Zimplow rides out liquidity pressures

ROBIN PHIRI

Zimplow Holdings has posted a solid uplift in revenue and profitability for the third quarter, powered by robust demand for construction, logistics and agricultural equipment, even as liquidity constraints persisted and grey imports continued to weigh on the market.

The group’s performance was driven by a series of strategic gains across its business units.

Farmec cemented its leadership in the tractor market, with the MF200 series accounting for 80% of units sold, while broadening its implement range to cater to the livestock sector. Mealie Brand delivered another standout performance, successfully diversifying into mining equipment repair with a 100% success rate in supplying critical components to large-scale mining operations. The unit also recorded an 87% jump in exports, buoyed by strengthened retail partnerships in Zambia and Namibia.

Although liquidity remained tight, financial institutions increased support to construction and logistics, spurring sales of high-value equipment. This helped push group revenue up 10% compared to the same period last year. Gross profit rose 8%, and operating expenses were kept 7.7% below prior-year levels, reflecting disciplined cost containment.

“The Group will continue to focus on margin protection, cost containment and debtor recovery in order to ensure that the Group’s operations are profitable,” said Sharon Mananganzira, Zimplow group secretary. She added: “The continued rollout of effective product support mechanisms, robust implementation of the Group’s One Stop Shop model and digital transformation initiatives will be implemented in order to achieve the Group’s strategic objectives for 2025.”

The operating environment benefited from relative economic stability, supported by an above-average 2024/25 rainfall season and promising forecasts for 2025/26. The improved rainfall outlook has boosted confidence across the agricultural value chain, stimulating demand for tractors, implements and small-scale farming equipment.

Still, the proliferation of grey imports—especially passenger tyres and small-scale agricultural equipment—remained a key challenge for several units. “Management implemented a raft of mitigation strategies that yielded satisfactory results,” Mananganzira said.

Looking to the fourth quarter, Zimplow expects traditional seasonal demand to drive a stronger finish to the year.

Tractors and implements, spares for small-scale farmers, generator containers and tyres are set to anchor revenue.

The group will maintain a tight focus on margin protection, cost control and aggressive debtor recovery, while accelerating product-support initiatives and fast-tracking digital transformation as part of its One Stop Shop model.