- Local and export volumes down 62% and 84% respectively
- Group revenue was 12% ahead of prior year
- PAT came in at ZWL$140m, 5% above last year
Harare-Listed agro-industrial firm Zimplow Holdings Limited posted a sharp decrease in performance in its farming division, Mealie Brand for the half year ended 30 June 2020, due to droughts and limited access to regional markets.
Zimplow is a group that manufactures and markets a diverse range of products for the construction, infrastructure and agricultural sectors in Zimbabwe. The Group operates five key divisions namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec.
In a statement accompanying the financials, Group Chairperson Mr Thomas Chataika highlighted that the lingering effects of last year’s drought which was caused by erratic rainfalls and extreme temperatures, led to the sharp decline in the farming division’s performance as compared to the same period last year.
“Local and export implements volumes were 62% and 84% down respectively,” he said.
“The first two trading months after half-year end are showing a recovery in business revenues”.
However, some of Group’s operations flourished, with the Farmec division achieving a resilient performance highlighted with operating profit for the period under review ballooning to ZWL$72m from ZWL$62m prior year.
Barzem’s revenues went up 145% to ZWL$221m from ZWL$90m.
Mr Chataika said the unit sold 13 CAT whole goods in the first half compared to two (2) in the same period of the prior year.
“After sales business parts and service hours were also ahead of the previous year by 3% and 19% respectively despite losing hours to the COVID-19 induced lockdowns”, he added.
CT bolts, the Group’s bolts manufacturer recorded a 73% growth in revenue to ZWL$22m whereas Powermec, the electronics provider revenues remained on a constant gradient at ZWL$52.2m with generator sales at the same level as last year.
The group has some positive light shining ashore their construction and mining industry which they hope might help in the recovery of the business.
EQUITY AXIS NEWS