- Zimplow experienced a 7.2% revenue decline, falling from US$32.0 million to US$29.7 million
- The company is rolling out comprehensive recovery strategies to address setbacks.
- El Niño-induced drought affecting agricultural outputs
Harare-Zimplow Holdings, Zimbabwe’s premier supplier of tyres, mining, and agricultural equipment, is set to rebound in 2025 following a tough 2024, according to its full-year financial results for the period ended 31 December 2024.
The company faced a 7.2% revenue decline, dropping to US$29.7 million from US$32.0 million, driven by an El Niño-induced drought and constrained liquidity that altered consumer spending patterns.
“The severe impact of the El Niño drought, the launch and subsequent devaluation of the new ZWG currency in September 2024, and tight liquidity have hit all our business units hard, particularly agriculture.” Group CEO Willem Swan said.
To counter these setbacks, Zimplow is rolling out a comprehensive recovery plan.
Mealie Brand, catering to small-scale farmers, saw its turnover plummet 46% to US$3.3 million due to drought-ravaged harvests and reduced demand for farming implements, compounded by fierce competition from smuggled goods crossing Zimbabwe’s porous borders.
In response, Zimplow slashed plough costs by 11% in 2024 through a maintenance overhaul, with plans for an additional 9% cut by mid-2025.
The company also earned a ZimTrade ‘Exporter of the Year’ award, boosting exports, and is pursuing mine repair contracts.
TrenTyre, the tyre and retreading arm, endured a 29% revenue fall, undercut by low-cost Chinese tyres selling at half its prices in a price-sensitive, cash-strapped market.
Delays at Beira port added pressure.
Zimplow closed its Gweru fitment centre, moved Bulawayo operations to Scanlink’s site reducing employment costs by 27% , rent by 38% and pivoted to truck and bus tyres, seeing retreading gains late in 2024.
Powermec, focused on power solutions, posted a US$170,600 loss despite a solar sales surge, hampered by supply chain woes. It’s now streamlining its supplier base to improve margins.
Tractive Power Solutions (TPS) saw a 478% revenue spike from equipment sales but remained unprofitable due to slim margins; it’s now targeting higher-margin spares and services.
Scanlink, the logistics unit, recorded an 8% revenue dip as bus sales fell 25%, though truck sales grew 19%. Facing a 24% cost rise, it’s banking on a robust sales pipeline.
CT Bolts, down 4% in turnover, grappled with port congestion and delays in its nail factory rollout (expected Q1 2025) but is refining stock strategies.
Zimplow’s 2024 operating loss reached US$3.1 million, a stark contrast to 2023’s US$880,600 profit. Assets stood at US$41.1 million, with equity at US$28.4 million.
Despite the challenges, the company is optimistic about its recovery trajectory in 2025.
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