Agriculture and mining implements group Zimplow Holdings Limited’s profitability for the five months to May 30, 2021 grew 90 percent compared to same period in the prior year on improvements in volume across business units.
Management is upbeat of maintaining this growth trajectory in the current financial year and going forward with measures put in place to limit the impacts of supply chain disruptions caused by Covid-19.
“We remain hopeful about our projections for 2021,”
said group chairman Godfrey Manhambara responding to questions by journalists on the sidelines of their annual general meeting in Harare yesterday.
“We continue to trade cautiously hedging against the risk of continued steel price increases and supply chain gaps of equipment and parts,”
Volumes at Farmec improved following a good 2020/21 rainfall season and the firm producer pricing for grains and tobacco. Tractor and implements sales volumes grew by 119 percent and 97 percent respectively against prior year for the same period under review.
Parts sales volumes went up 38 percent and workshop capacity utilisation improved by 6 percent against prior year.
At Mealie Brand, sales volumes grew across its product range with local implements sales registering a 93 percent increase ahead of prior year.
The export market showed strong signs of recovery with growth on implements and spares recording sales volumes of 137 percent and 186 percent respectively against prior year, following the easing up of lockdown measures.
Management is watchful of the increases in the price of steel and factory efficiencies in order to meet the projected demand for Mealie Brand products.
According to the group, CT Bolts has continued on a growth trajectory since the interventions and strategies implemented in 2019 resulting in volumes growth of 52 percent against prior year for the same period under review.
Barzem recorded a 140 percent growth in earth moving equipment backed by activity from the construction sector.
On the downside, demand for Powermec’s products has reduced on the back of the stability on the grid. Hence genset volumes and hours sold reduced by 24 percent and 13 percent compared to prior year.
But the business unit continues to focus on routine maintenance and market development as it adjusts to the new operating levels.
Despite the uncertainties caused by the Covid-19 pandemic, Zimplow remains hopeful of good performance during financial year 2021. The growth will be underpinned by the back of positive economic growth projections backed by increased activity in mining and improved agriculture production.