- Perkins generator sales were up by 6%
- Overall revenues declined by 19% in real terms
- Farmec recorded a contraction in tractor sales
Harare- Depressed customer demand and the delayed opening of the tobacco selling season due to the COVID-19 induced lockdown negatively affected Zimplow’s group performance in the 5 months ending 31 May 2020, resulting in a drop in overall revenues.
BazermCAT saw an improvement in CAT’s equipment sales to 450% growth against the previous year due to activity in mining and infrastructure projects.
Parts, in terms of after sales were 8% ahead of prior year in real terms and service hours dropped 14% due to time lost during the lockdown.
Powermec, the official distributor of Perkins parts and engines in the country also registered improved performance in spite of the stable on-the-grid power supply experienced during the national COVID-19 induced lockdown.
Perkins generator sales were 6% ahead of the previous year while parts sales improved by 36% compared to prior comparable period and service hours sold were 108% up.
CT Bolts recorded a 19% volumes growth with both mild and high tensile steel bolts performing strongly as the business unit goes through transformation.
“The drought and the erosion of disposal incomes by the hyperinflationary environment exacerbated the performance of our agro-focused units in Mealiebrand and Farmec”, the Group said.
Agricultural equipment supplier, Farmec saw a decline in tractor sales volumes which dropped by 37% from the prior comparable period.
Parts sold were 17% behind prior period whilst service hours sold were 29% behind the same period last year.
Implements sold at Farmec were 29% ahead of the previous year while Mealiebrand was further affected by the boarder lockdowns, resulting in the Company’s failure to support the export market which saw little activity at the division.
The Group’s overall revenues in the period under review were down by 19% in real terms and 623% up in ZWL terms while profitability dropped by 42% in real terms but was up 368% in ZWL due to inflation.
The Group is a manufacturer and distributor of farming implements in sub-Saharan Africa and operates through the above-mentioned business units.
Equity Axis News