- Revenue up by 17%
- Sales volumes were up across most business units
Harare – Agroindustrial firm Zimplow Holdings Limited which is involved in the production and marketing of agricultural and industrial equipment in Zimbabwe and the region posted improved revenue and sales volumes across most of its divisions for the year ended 31 December 2020.
The Group operates five key divisions namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec.
The Group’s revenue for the period under review was ZW$2.7 billion, representing an increase of 17% compared to the ZW$ 2.3 billion recorded in the previous year.
A breakdown of each division’s performance shows that Barzem limited, a local Caterpillar machinery dealer, recorded revenue growth of 47 percent and the operating profit also surged by 8% which was supported by a 4-fold growth in whole goods volumes.
Meanwhile, bolts, nuts, and nails manufacturer and distribution company, CT Bolts, posted a 180 percent improvement in revenue to close at ZW$93m. Volumes grew by 55% across all product ranges for the period under review.
Farmec, Zimplow’s division dealing in the distribution of Massey Ferguson tractors, combine harvesters, and related equipment, posted an impressive performance with revenue growing by 13% driven by the tractor and implements volumes growth of 30 percent and 37 percent respectively against the prior year.
Tractor sales revenues were up 21% compared to the prior comparative period boosted by the introduction of the Massey Ferguson four-wheel-drive tractors in the lower horsepower range in Zimbabwe.
Powermec, on the other hand, had its revenue drop by 23% compared to the previous year, its volumes were down 20% for the same period as power consumption switched from generators to the grid resulting in operating profit reducing by 50%.
Zimplow’s agricultural equipment manufacturer, Mealie Brand recovered in volume terms by 20% owing to the local implements sold against the prior year despite a slow start to the financial year.
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