TINASHE MAKICHI
Zimplow’s aggressive focus on niche market opportunities resulted in an
increase in volumes for the group during the third quarter to September 30, 2019.
The positive volume performance at Mealie Brand and Powermec spurred the group’s overall performance, counter-balancing the downward adjustment in demand for products in other business units in line with economic activity.
The group’s diversified portfolio showed resilience despite the severe
drought that hit the country this year and prevailing economic challenges.
“The general focus on niche opportunities and the balance sheet management resulted in the solid performance recorded by the group,”
said Zimplow company secretaryMax Chinorwadza.
At Mealie Brand, total implemenT volumes were 13% ahead of the prior year while export implements sales grew 307%, helping to ameliorate the drop in local demand of implements which was 63% down on the comparative period.
Demand for the group’s Perkins engine driven generators also grew 85% compared to the same period last year. Service hours sold went up 28%
against last year, as Perkins engine powered generators became the pri-
mary source of power for the company’s customers.
Farmec’s performance also adjusted to the general economic climate as tractor sales volume declined 45% for the nine months compared to the
same period last year.The 2018-19 drought and the poor tobacco price yield impacted adversely on Farmec’s after-sales support as parts pieces sold dropped by 31%, whilst service hours were 24% down for the nine-month-year to date.
Despite the volumes for Barzem this year trailing behind last year’s, the posture of the business improved. But both earth moving equipment volumes and service hours were down 58% and 24% respectively during
the period under review.
At CT Bolts, the growth in high tensile steel bolts by 86% somewhat offset the 57% drop in demand of mild steel bolts, resulting in the business fending off a general decline in demand for fasteners.
According to the group, focus remains on increasing market share with a customer-centric value proposition. This year Mealie Brand export performance and Powermec’s generator sales sustained the group’s bottom line.
In light of the performance by the group, the board proposed an interim dividend of 3.14 cents per share payable in respect of all qualifying
ordinary shares. The dividend will be paid from the profits for the current
financial year.
