RYAN CHIGOCHE
Zimplow Holdings Limited, the country’s leading manufacturer and distributor of equipment in agriculture, mining construction and power systems sectors, posted a 55% increase in revenue in the 12 months to December 31, 2021, driven by its mining and infrastructure divisions.
The top line for the mining and infrastructure division, which comprises CT Bolts, Powermec and Barzem, more than doubled in the reviewed period, a development which positively impacted on the overall group revenue.
Consequently, Zimplow registered a revenue of ZWL$6.6bn in the reviewed period from ZWL$4.3bn reported in the previous year.
Profit for the group increased 26% to ZWL$435m in the period under review from ZWL$345m in 2020.
Board chairman Godfrey Manhambara said the drive by the government to support infrastructure development through the Emergency Road Rehabilitation Programme culminated in increased earth moving equipment sales at Barzem.
“This culminated in an increase in overall volumes of earth moving equipment sales which grew by 84% against prior year performance,” Manhambara said.
He said the focus on production by major mining houses who use CAT surface mining and handling equipment resulted in increased fleet maintenance.
“Consequently, parts sales grew by 75% and hours sold by 65% against prior year performance,’’ board chairman,” Manhambara said.
He said Ct Bolts volumes also grew by 48% against prior year performance driven by focus
towards establishing new market segments such as prepacked fasteners for the retail market, specialised mining bolts.
However the group warned that its revenue performance is set to be affected by Barzem who will leave its distributorship deal with Caterpillar at the end of September 30, 2022.
The group is currently in search of new suppliers of earth moving machinery as their 70 years old partnership with Caterpillar is coming to an end.
However, Manhambara said the group is confident that the capacity built over the years in terms of goodwill and trust in Zimplow’s backup infrastructure, human capital skills and experience in the provision of earth moving equipment, will be vital in resetting the mining and infrastructure cluster.’
He said Zimplow will also concentrate on expanding the new product line that has not yet been released.
Volumes for Farmec grew by 48%. Tractor pulled implements grew 56% while parts sales increased by 30% in the agricultural cluster.
As a result, the division’s revenue increased by 48%, and its operating profit increased by 69% in real terms compared to the previous year’s performance.
Another Zimplow unit, Mealie Brand, reported a 10% volume increase in the period under review.
In the logistics and automotive cluster, Scanlink, reported a 15% revenue increase.
Operating profit increased by 145% in the logistics and automotive cluster.
