Business - Companies & Markets - Local - October 19, 2020

Zimplow third-quarter volumes up across all business units

By Falton Zveushe

LISTED manufacturer and distributor of agro implements, Zimplow says third-quarter volumes were up across all business units spurring the year to date (YTD) revenues to be 10% ahead of the prior year.

Inflation-adjusted revenue was up 12% to ZWL$479 million in the first half of 2020 from ZWL$428 million in the comparable period last year, with the firm saying it ‘showed resilience’.

The group said its first nine months performance gained momentum in the third quarter ended 30 September 2020. But, operating profit was flat against the prior year.

“The new financing relationship on our capital goods, the injection of new energy in the team and our ability to take advantage of market opportunities, despite the serious headwinds in the trading environment, provided the lift-off to our performance,” said Zimplow in a trading update.

On operations, Barzem YTD performance was 420% ahead of the previous year’s performance. The business unit sold 26 whole goods compared to 5 in the same period the prior year. After-sales business was flat compared to the prior year.

Aggressive efforts to put CT Bolts on a growth trajectory continue to yield positive results. This comes as the business unit achieved an average of 33% growth on all fastener lines on a year to date basis.

At Farmec, tractor volume sales were flat with 76 units being sold, but sales from the business unit’s implements category shot up, pushing its overall performance to 4% ahead of the previous year. Also, Pipeline prospects are promising, as such, the business forecasts that year-end volumes will surpass the prior year’s performance.

Powermec’s revenue on whole goods was 8% ahead of the 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. The business is planning to broaden its product mix in line with business targets.

Mealie Brand saw local implements sales leveling against prior year to date performance. Spares were 11% ahead of the prior year for both the export and local markets.

“Weather forecasts project good rains for the country, as such, the teams are working aggressively to meet the demand for this coming period in order to close the year with a strong performance.”

In the outlook, the group expects to exceed last year’s performance and initial targets.

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