- Zimplow has launched a re-engineering manufacturing process at its Mealie Brand unit
- Mealie Brand’s revenue was 11% below budget and local sales down 27% due to tight liquidity and import competition
- The group reported a year-to-date revenue of US$7.06 million
Harare-Zimplow Holdings, Zimbabwe's leading supplier of agricultural, mining, and automotive equipment, has introduced a new re-engineering manufacturing process at its Mealie Brand unit, according to the latest first quarter 2025 trading update.
The move aims to enable the company to compete effectively with low-cost grey imports and increase sales volumes.
"Management implemented cost-saving measures that included the re-engineering of product manufacturing processes," the group said.
The development is part of a broader set of cost-saving initiatives implemented by management, including an application to the National Employment Council (NEC) for a three-day workweek, reduction of non-critical staff, and energy-saving measures.
These efforts are expected to yield positive results in Q2 and the second half of 2025.
The need for such measures became apparent after Mealie Brand faced challenges in the quarter, with revenue 11% below budget and local sales down 27% due to tight liquidity and import competition.
Despite these local challenges, Mealie Brand's exports demonstrated resilience, growing by 20% year-on-year.
The company's other segments presented a mixed performance.
Farmec outperformed expectations, posting a 6% revenue increase above budget, driven by strong sales of its MF200 series tractors. The unit's gross margin remained steady at 23%, and liquidity is improving, tied to the tobacco sales season.
In the Logistics and Automotive Sector, Scanlink delivered a stellar 44% year-to-date (YTD) revenue surge, 40% above budget, fuelled by parts sales, service hours, and bus and truck sales.
Conversely, TrenTyre struggled, with sales down 39% year-on-year and 32% below budget. However, a 43% rise in retreat volumes and efforts in debt restructuring and customer outreach aim to facilitate a Q2 recovery.
In the Mining and Infrastructure Equipment and Service Sector, Tractive Power Solutions (TPS) achieved a remarkable 174% revenue increase year-on-year, although 37% below budget, with thin margins.
CT Bolts reported a 14% sales volume rise but faced profit challenges due to costly South African stock, prompting a shift to a wholesale model.
Meanwhile, Powermec posted a 26% revenue increase, 1% above budget, driven by solar installations and engine overhauls, with costs kept within 4% of budget despite generator stock issues.
The group recorded a year-to-date (YTD) revenue of US$7.06 million, reflecting a 14% increase over the prior year and 2% above budget.
Looking ahead, the company is focusing on liquidating high-value stock, enforcing stricter payment terms, and expanding cost-saving measures across units.
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