• Zimplow records 11% revenue jump
  • Barzem Enterprises suffers huge blow, ceases to be the CAT distributor
  • Company sees improved profitability in 2022/23 farming season

Harare – Zimbabwe Stock Exchange (ZSE) listed manufacturer and supplier of agriculture, mining and construction implements, Zimplow Holdings, posted an 11% increase in revenue for the third quarter ended 30 September 2022 compared to the prior year corresponding period. This revenue jump was spurred, according to the Group, by increased economic activity in the period under review in various sectors of the economy that the company operates in particularly agriculture, mining and logistics. However, the financial performance for the period under review did not include one of the company’s main line of business units, Barzem Enterprises.

In the agricultural equipment and service segment, the Group recorded a decrease in traded volumes of 4% and 9%, respectively, in tractors and implements. On the other hand, service capacity utilization, however, surged by 45% in the third quarter compared to the comparable period prior year. The Group further hopes that the Farmec business unit, a leading supplier of internationally recognized agricultural equipment brands, will positively contribute to overall company profitability as the country prepares for the 2022/23 agricultural season.

The Mealie Brand division, the largest manufacturer and distributor of farming implements in Sub-Saharan Africa (SSA), registered a 26% jump in export provision to the SSA region and the company has stepped up measures to consolidate its market share in the SADC region. The foreign currency generated from the export of implements has given the company the much needed relief to the overall financial performance of the Group.

Barzem Enterprises division, which supplies various products made by Caterpillar which are mostly used in mining operations, suffered a huge blow as the business unit has for the large part of the year been under care and maintenance and ceased distribution of these products as of 30 September 2022. However, the company is in the process of ensuring that the division resumes operations in no time.

“The impending rainfall season will drive demand for products and services under the Group’s Agriculture Cluster. Furthermore, the continued national strategic thrust on infrastructural development coupled with the continued drive in output growth in the mining sector by the Central Government, bodes well with the Group’s Logistics & Automotive Cluster and the Mining and Infrastructure Cluster”, said the company.