Zimplow posts strong FY financial results
PHILLIMON MHLANGA
Listed agro-industrial group, Zimplow, posted strong financial results in the year to December 31, 2020, with profit growing 199% to ZWL$101m in the reviewed period from ZWL$35m in prior year.
The financial results published this week shows that revenue for ZIMPLOW, which operates four divisions Barzem, Mealie Brand, CT Bolts and Farmec, went up 85% to ZWL$504m during the reviewed period from ZWL$273m in 2018.
“Volume performance was mixed across the Group with Powermec and Mealie Brand increasing their volumes while Farmec, Barzem and CT bolts suffered some volume reduction. Through a good mix of exports and local products sold the company was able to surpass prior year profitability in real terms,” Zimplow chairman, Thomas Chataika said.
Revenues for Farmec went up to ZWL$172.1m during the reviewed period from ZWL$99.1m. The business sold 104 tractors, down 37% from the 2018 sales.
Parts and implements sold were down 22% on prior year. Farmec contributed 44% of group profitability, which stood at ZWL$44.6m.
Mealie Brand had a strong year with revenues up from ZWL$70m to ZWL$112.8m.
“The division benefitted from strong export sales which were up 62% on the prior year. Export sales enabled the division to have exchange gains while also providing forex for other group companies.
The business achieved a profit after tax figure of ZWL$55.9m up from ZWL$17.1m,” Chataika said. Revenues for CT Bolts went up to ZWL$16.2m from ZWL$10.2m.
Overall volumes were down 26% to 299 tonnes. However, there was a trade-off in the sales volume mix with high tensile steel bolts up 151% and mild steel down 51%.
The business remains profitable and achieved a profit after tax of ZWL$493k down from ZWL$1.9m in the prior year, Chataika said.
Barzem’s turnover went up to ZWL$150.6m from ZWL$71.2m. Profit after tax came in at ZWL$36.3m up from ZWL$4.1m in the prior year.
Chataika said Barzem, going forward, represents the biggest growth opportunity for the group over the coming few years
