- Agricultural sales and after-sales services hit hard by severe drought conditions
- Local implement Mealie Brand down 47%, exports plunged 92% year-over-year
- Scanlink business bucked the trend with 200% jump in truck sales and 100% rise in buses
Harare- Zimbabwean agricultural products manufacturer and distributor Zimplow Holdings has reported depressed revenue of US$6.1 million in Q1, down 14% year-over-year, largely due to an erratic drought season that dampened sales of agricultural products and after-sales services.
El Niño-induced drought had "severe consequences" on its customers in the Agriculture Cluster. Farmers suffered crop losses and/or poor harvests, resulting in lower-than-expected tractor sales and suppressed demand for after-sales services due to low disposable income.
As a result, the Agriculture Cluster's performance was depressed during the period. Local implement Mealie Brand saw a 47% drop in sales volumes, while export market volumes plunged 92%.
Farmec Implements sales were 19% below the prior year, and tractor unit sales fell 53%.
However, the group's Scanlink business bucked the trend, recording a 200% increase in truck sales and 100% rise in bus sales compared to the year-ago quarter. Service hours also grew 4% year-over-year.
Looking ahead, the company said it is pivoting efforts towards positioning its Develon and FAW brands as products of choice, while aggressively implementing its "One Stop Shop" strategy to leverage synergies across the group.
"Management remains confident that the Group will further deliver value to its various stakeholders with its strategies to improve sales and service of its products and maintain its focus on cost containment," the statement concluded.
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