- Sales volumes were up across all business units
- Biggest improvement from Barzem limited
- Revenue was up 10%
Harare – Agro industrial firm Zimplow Holdings Limited which is involved in the production and marketing agricultural and industrial equipment in Zimbabwe and the region posted improved revenue and sales volumes across all its divisions in the third quarter ended 30 September 2020.
The Group operates five key divisions namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec.
According to the company’s Q3 trade update, Barzem limited, a local Caterpillar machinery dealer, recorded a 420% improvement on volumes in the period under review after selling 26 units as compared to the same period in the prior year in which only 5 units of machinery were sold.
Meanwhile, bolts, nuts and nails manufacturer and distribution company, CT Bolts, posted a 33% improvement in sales volumes in the year under review compared to the third quarter in 2019.
Zimplow accredits CT Bolt’s improved performance to some aggressive efforts initiated to put the company on a growth trajectory.
Farmec, Zimplow’s division dealing in the distribution of Massey Ferguson tractors, combine harvesters and related equipment, Perkins engines and generator sets, Monosem planters, Falcon range of equipment, Kongskilde, Vicon, Ferri and Howard, posted a 4% improvement in volumes due to sales from the business unit’s Implements category shooting up.
Tractor volume sales however were flat with 76 units being sold, the same as in the comparative period however the business forecasts that year-end (FY20) volumes will surpass the prior year’s (FY19) performance.
Powermec, the official distributor for Perkins parts and engines in Zimbabwe as well as the exclusive distributor Massey Ferguson and PowerCo generators, recorded an 8% improvement on volumes with most sales coming from big generator sets.
Zimplow’s agricultural equipment manufacturer, Mealie Brand recorded implements sales level against prior year to date performance while however spares volumes came in 11% ahead of prior year.
Mealie brand has been struggling due to the effects of drought on business and in the half year ended 30 June 2020 local and export volumes were down 62% and 84% respectively, the division however expects a boost in sales in the last quarter of the year on the back weather projections that predict a good rain season that will in turn drive up sales.
As a result of the improved volumes performance across all business units, year to date revenue was posted 10% ahead of that recorded in the prior year.
Meanwhile the broader economy remains in an economic quagmire following the COVID-19 pandemic and the double barelled carryover effects of drought and austerity.
The economy has contracted into a recession following the assumption of austerity in 2019, which was later solidified by the rushed reintroduction of the local currency. Consumers’ purchasing power has been eroded as inflation raged, taping from exchange rate depreciation.
Industry has consequently reported reduced double-digit volumes for the second year running, with a few exceptions.
Equity Axis News.