Zimplow tweaks product offerings
BUSINESS REPORTER
Agro-industrial concern, Zimplow says it is making major progress towards product refinement in order to gain a competitive edge and optimise profits for all its units.
This was confirmed by Zimplow company secretary Sharon Manangazira in a trading update for the quarter to September 30, 2023.
After a lackluster showing in the third quarter, Manangazira said the refinement exercise is anticipated to improve the company’s fortunes.
“The group continues to channel notable efforts towards the refinement of the current product offering as well as improving the customer experience in the provision of after sales products.
“To this end, the group’s research and development unit is currently actively working on the development of new products that meet the needs of our customers, thereby enhancing the group’s market visibility and presence,” Manangazira said.
She added: “The refinement of products to achieve a competitive edge is currently underway in order to boost business volumes, as it relates to the export market. “
According to Manangazira, the company is pushing hard for customer expansion and retention in order to maintain business growth and sustainability.
The group anticipates that the refinement exercise will increase revenue generation, which was US$23.6m at the period under review —a 7% decrease from the same period last year.
Manangazira ascribed the decrease to the difficult operating conditions that are currently in place.
She said implements sales at Farmec, a subsidiary of Zimplow, stood at 156 units which is a decrease of 11% in comparison to same period last year. Tractor units sold were 85 which is a decline amounting to 11% when compared to September 2022.
Manangazira claims that Farmec is working harder than ever to get financing from local financial institutions for the benefit of both current and potential clients.
As a result of the shifting market dynamics, Farmec is focused on matching the demand pipeline,” the spokesperson stated.
Another subsidiary, Trentyre, recorded 6,751 units of retreads for commercial and consumer tyres resulting in a negative variance of 12% in comparison to prior year same period.
New tyre sales volumes of 11,786 were 5% below prior year performance.
In an effort to recover market share, Manangazira claimed that management is modelling the company to the operating environment.
Scanlink recorded an impressive performance in the period under review.
“In this respect, 12 trucks and 19 buses were sold by the business unit. Thus, trucks and bus sales were 33% and 850% ahead of prior year performance and budget respectively. Service hours totalling 9,298 resulted in the business unit recording a positive variance of 14% in comparison to prior year performance.
“The parts business is expected to improve on the back of a new consignment of fast-moving stock that was received during the month of September 2023,” she said.
According to Manangazira, the business unit’s two biggest revenue generators during the period under review were the mining and construction industries.
“The company will continue to implement various business development and growth initiatives targeted at the mining sector.
“The company recorded a 2% positive variance in the sale of mild steel bolts in comparison to same period last year,” she said.
Another subsidiary, Powermec, sold 67 generator units and recorded 6 417 service hours in the period under review thus registering increases of 40% and 2% respectively, in comparison to the same period in the prior year.
This positive performance continues to be derived from the electricity supply that improved during the quarter under review at both a household and industrial level.
The Mealiebrand unit also hopes to build on its successful performance on the local market through continued customer visits and by fostering stronger ties with non-governmental organisations and wholesalers.
“During this year’s Zimbabwe Agricultural Show, the business unit launched the two-wheel tractor and related implements.
“This move has had a significant impact on business volumes as evidenced by increased sales with respect to trailers.
“In addition, the business unit is progressing well with its capacitation project as the majority of the equipment was procured in the period under review and delivery is expected towards the end of this year,” she said.
