LIVINGSTONE MARUFU
Listed farming implements manufacturer and distributor, Zimplow Holdings Limited, is hopeful that projected good rains for Zimbabwe in the coming season could help push the company volumes to meet demand for the expected good season.
Zimplow company secretary, Charles Chaibva, said the company is expecting to end 2020 strongly.
“Weather forecasts project good rains for the country, as such, the teams are working aggressively to meet demand for this coming period in order to close the year with a strong performance,” Chaibva said.
In its financial results for Q3 to September 30, 2020, volumes across all business units went up, spurring the year to date (YTD) revenues to be 10% ahead of prior year.
The company’s operating profit was flat against the prior year. Zimplow operates five business units namely Barzem, Mealie Brand, Powermec, CT Bolts and Farmec.
Barzem YTD performance was 420% ahead of the previous year’s performance. The business unit sold 26 whole foods compared to five in the same period prior year, the company said.
After sales business was flat compared to prior year.
CT Bolts achieved an average of 33% growth on all fastener lines on a year to date basis, Chaibva said.
Tractor volume sales were flat with 76 units being sold, however, sales from the business unit’s implements category shot up, pushing Farmec’s overall performance 4% ahead of the previous year.
Chaibva said pipeline prospects were promising and the business forecasts that year-end (FY20) volumes will surpass the prior year’s (FY19) performance. Powermec’s revenue on whole goods was 8% ahead of prior year.
The business unit’s product mix was skewed towards big gen-sets.
After sales labour hours sold were 56% ahead of prior year volumes for the same period. Looking ahead, the business is planning to broaden its product mix in line with business targets, according to Chaibva.
The third quarter saw Mealie Brand with local implements sales levelling against prior year to date performance.
Chaibva said despite experiencing a challenging business environment the group is likely to exceed its initial targets driven by the energy levels in the group, the determination and drive of the teams, combined with the sales prospects in the pipeline.
Meanwhile at the Extraordinary General Meeting held last week the proposal to acquire the entire issued share capital of Scanlink (Private) Limited and that of Tredcor Zimbabwe (Private) Limited, were approved by Zimplow shareholders.
Zimplow shareholders also approved the acquisition of the entire issued share capital of Birmingham Investments (Private) Limited and the acquisition of Stand 30001Dagenham Road, Willowvale Township, Harare.
