Harare - Diversified construction, infrastructure and agricultural equipment manufacturer and distributor Zimplow Holdings' revenue for the year ended December 31 2018, went up by 25 percent from $39.1 million in 2017 to $48.7 million due to improved performance across all its segments.

The Group also attributed the success to the 2018 financial year to growth in the national GDP and resurgent agricultural sector.  Zimplow Limited, incorporated in 1939, is the largest manufacturer and distributor of farming implements in sub-Saharan Africa and operates through five divisions, namely, Barzem, Mealie Brand, CT Bolts, Powermec and Farmec.

At Mealie Brand revenues went up 9 percent from $11.5 million to $12.5 million with the mix tilted towards more profitable local sales.

“Underlying volumes of local implements were up 19 percent to 43 490 with exports down 48 percent to 23 610. Due to effective cost management net profits went up 41 percent from $2.9 million to $4.1 million,” said Group Chairman Thomas Chatakaita in a statement accompanying the Group’s financial results.

Revenues at Farmec increased by 59 percent from $11.1 million in 2017 to $17.7 million in 2018 on the back of a strong showing in tractor sales which were up 75 percent from 95 units in 2017 to 166 units in 2018.

“Massey Ferguson tractors were 90 percent of the volume with Valtra making up the balance. Workshop hours sold were flat on last year at 11 716 hours and net profitability for Farmec was up 145 percent to $2.7 million from $1.1 million,” said Chatakaita.

Powermec revenue was up 116 percent from $1.9 million in 2017 to $4.1 million. Gensets were 80 percent of the turnover with parts and service making up the balance.

“We will look to increase the relative contribution of more predictable mix. GP margins were squeezed due to lower stock turn and consequently Powermec made a profit of $350 000, which was up only 18 percent on prior year.”

At Barzem revenue were up 7 percent to $12.7 million, while the sales mix of 40:60 percent between whole goods and parts/ service was good.

“Profitability remain muted as the business currently operates at a fraction of its potential. Alignment of shareholder objectives and interests is the first step towards putting Barzem in a position to competently serve the local market.”

Additionally, turnover for FY18 at CT Bolts was up 20 percent from $1.5 million to $1.8 million with profitability up 96 percent to $742 000. Chatakaita said this remains a niche business and an increased focus on the northern half of the country has produced extra revenues and profits focus on the northern half of the country has produced extra revenues and profits for the company.

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