- Reports growth across all units except Powermec
- Macroeconomic stability and prospect of a bumper harvest has supported capital expenditure
- Says that at present, the Group is stable and of a sound going concern
HARARE – Zimplow holdings limited, marker and is involved in marketing a diverse range of products for the construction, infrastructure, and agricultural sectors in Zimbabwe, today announced an update for the first quarter activity ended 31 March 2021.
“The Group has had a very positive start to the year with the first quarter operating performance ahead of prior year. The Group experienced wholegoods volumes growth across all business units except at Powermec. The environmental stability, mostly driven by currency reforms, infrastructure development projects and the prospects of a bumper harvest following a 2020/21 good rainfall season has supported capital expenditure. However, general equipment utilisation capacity in the first two months of the quarter was affected by lockdowns following a second wave of Covid-19 infections after the festive period.”
Zimplow operates five key divisions namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec highlighted above.
Highlights of Group’s operations
- Volumes at Barzem were 13% ahead of prior year with the product mix largely skewed towards earth moving equipment for the infrastructure development sector, unlike in the prior year where 50% of the units came from CAT gensets and lift trucks. Overall aftersales performance, driven by a 34% growth in parts sales, has been ahead of prior year despite workshop volumes losing hours to Covid-19 lockdowns.
- At Farmec, tractor volumes doubled and implements were 76% ahead of prior year. After-sales performance was 38% ahead of prior year.
- CT Bolts has continued to develop new relationships and markets. For the quarter, volumes across the range grew by 24% compared to same period last year.
- At Mealiebrand, the positive rainfall season provided a platform for volumes growth. Local implements were 39% ahead of prior year. Spares uptake improved this quarter with 86% and 68% growth against prior year in the local and export markets respectively.
- Powermec was significantly affected by reduced activity as a result of Covid-19 lockdowns. Volumes slowed down by 33% on average at both the wholegoods and aftersales. “The unit looks forward to improved performance following the easing of lockdown restrictions.”
Outlook and Prospects
The group said that at present, it is stable and of a sound going concern.
“The increased uptake of the Covid-19 vaccination, as we navigate the pandemic, provides better prospects for the Group in 2021.”
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