- Recorded double-digit revenue growth in five months to May 2021
- Profitability grew by 90%
- Geared for growth amidst positive economic projections for the financial year 2021
HARARE – Zimplow holdings limited, market leaders in farming, infrastructure and mining equipment delivered an improved performance across the board for the five (5) months period ended 31 May 2021 pushing revenues to double-digit against the prior year.
Profitability for the period grew by 90% against prior year in real terms, the Group said in trading update.
In the face of the pandemic, the Group said that it has to a larger extent managed to limit the impact of supply chain disruptions caused by COVID-19.
“We continue to trade cautiously hedging against the risk of continued steel raw material increases and supply gaps of equipment and parts by our OEMs,” the Group said.
Zimplow operates five key divisions namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec.
Farmec, which holds franchise agreements for Massey Ferguson tractors combine harvesters and related equipment, volumes following the 2020/21 rainfall season and the firm producer pricing for grains and tobacco.
Resultantly, tractor and implements sales volumes grew by 119% and 97% respectively against prior year same period under review. Parts sales volumes grew by 38% and workshop capacity utilisation improved by 6% against prior year.
Mealie brand recorded sales volumes growth across its product range. Local implements sales were 93% ahead of prior year while the export market showed strong signs of recovery with growth on implements and spares sales volumes of 137% and 186% following the easing up of lockdown measures.
“We are closely looking at the increases in the pricing of steel raw materials, which so far have been born by the customers, and the factory efficiencies in order to meet the projected demand for Mealie Brand products,” the Group said.
Barzem, the local representative of Caterpillar and Hyster, ‘world leading’ manufacturers of earthmoving equipment and forklift products, recorded a 140% growth in earth moving equipment backed by activity from the construction sector.
Meanwhile, CT Bolts volumes grew by 52% against prior during the period under review.
In contrast, demand for Powermec’s products reduced compared to the levels of 2020 following stability on the grid. Hence Genset volumes and hours sold reduced by 24% and 13% compared to prior year same period.
“The business unit continues to focus on routine maintenance and market development as it adjusts to the new operating levels,” the Group said.
On the outlook, the said it is geared for growth and management have put in place strategies and tactics to take advantage of the positive economic projections for the financial year 2021.
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