Zimplow weathers Covid-19 storm to record profit

Farm implements manufacturer, Zimplow Holdings Limited, has weathered the Covid-19 storm and recorded a 5 percent increase in profit after tax, the company’s half-year financial results for the period ended June 30, 2020, indicate.

The Zimbabwe Stock Exchange-listed Bulawayo-headquartered concern produces and distributes farming implements in sub-Saharan Africa and operates through five divisions, namely, Barzem, Mealie Brand, CT Bolts, Powermec and Farmec.

“Profit after tax was 5 percent ahead from ZWL$134 million to ZWL$140 million,” said group chairman, Thomas Chataika, in a statement accompanying the results.

“In the first half of the year, all business metrics were affected by the Covid-19 pandemic. The group managed to pull through this difficult and unprecedented trading period. Revenues showed resilience coming in 12 percent ahead of last year in inflation-adjusted terms from ZWL$428 million to ZWL$479 million.”

Chataika said Barzem’s revenues went up 145 percent to ZWL$221 million from ZWL$90 million.

“The unit sold 13 CAT whole goods in the first half compared to two in the same period of the prior year,” he explained.

“After sales business parts and service hours were also ahead of the previous year by 3 percent and 19 percent respectively despite losing hours to the Covid-19 induced lockdowns.”

CT Bolts, Chataika said, also continued its recovery with a 73 percent growth in revenue to ZWL$22 million.

The unit achieved 21 percent volume growth compared to the same period last year with its operating profit going up by 25 percent to ZWL$10.6 million.

The chairman said the unit would continue to focus on product spread while realigning its distribution channels.

“Powermec revenues were flat at ZWL$52.2m with generator sales at the same level as last year,” said Chataika.

“The after-sales business showed improvement with parts sales 10 percent ahead of prior year in real terms and service hours sold 111percent ahead of the prior period. The efficiency of our service delivery is a prime focus for the business together with the roll-out of our sustainable energy and hybrid energy solutions.”

Farmec also operated profitably during the period under review while Mealie Brand performance went down in the past six months.

“Our outlook is cautiously positive supported by good leads in the construction and mining industry,” said Chataika.

“In addition, we are encouraged by the government’s focus on the performance of the agriculture and mining sectors. In light of this, the group will continue to look out for opportunities to expand its business reach.”

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