Zimplow registers US$12,07m revenue in first 5 months

Published: 01 July 2025

Diversified industrial giant Zimplow Holdings Limited has recorded a 10% increase in revenue to US$12.07 million for the first five months of 2025, as it intensifies efforts to return to profitability through a sweeping reorganisation of its business model.

Zimplow, which operates across agriculture, mining, infrastructure equipment, services, logistics, and automotive sectors, is currently implementing a turnaround strategy following a US$2.16 million loss reported for the full year ending December 31, 2024.

During the company's Annual General Meeting in Harare on Monday, Zimplow chief executive officer Willem Swan said the group had initiated a series of reforms, including a model stock holding framework and liquidation of slow-moving high-value inventory at subsidiaries Farmec and Tractor and Trailer Parts Sales (TPS).

"The group recorded revenue of US$12.07 million, a 10% increase compared to the same period in 2024 (US$10.99 million)," said Swan. "However, gross profit was 2% below the previous year."

Swan said the company was focusing on tighter debt control, stronger recovery efforts, and deeper cost containment measures to reduce administrative expenses. He also noted that the current stability of the Zimbabwe Gold (ZiG) currency and access to forex through Mealie Brand's exports would help support the company's financial recovery.

"GDP growth is forecast between 5.2% and 6% as the economy recovers from the 2023/24 drought and with continued foreign investment in the mining sector," he said. "Overall, management is confident that the group will continue to climb back to profitability."

The agriculture division reported strong performance across its Farmec and Mealie Brand units.

Farmec's revenue for the year-to-date was up 16% compared to the same period in 2024, buoyed by a surge in tractor sales which reached 61 units—30 more than the previous year. The second quarter showed particular strength, and Swan expressed optimism for an even stronger Q3, driven by tobacco auction proceeds and confirmed orders.

Mealie Brand also posted impressive growth, with revenue 42% higher year-to-date. Local sales exceeded budget by the same percentage, while export volumes rose by 110% over the previous year. However, Swan cautioned that competition from cheaper Indian and Chinese imports in Zambia could dampen further export growth compared to 2023.

Local implement volumes grew by 47%, while local spares increased by 80%, reflecting improved demand and supply chain efficiency.

Powermec, Zimplow's power generation unit, reported an 11% revenue increase compared to the prior year. Sales of generator sets rose to 33 units (up 38%), while service hours increased by 53% and surpassed budget by 19%. Parts sales were also 16% ahead of the previous year.

Swan said the power crisis in Zimbabwe and growing demand for alternative energy solutions placed Powermec in a strategic position for further growth. He also emphasised the group's ongoing efforts to attract new customers in agriculture and mining, and to improve stock availability.

Meanwhile, the automotive arm Trentyre saw a 35% revenue decline year-on-year. However, retread volumes rose by 8%, while operating expenses were cut by 27%, placing them 2% below budget.

"Turnaround efforts are underway at Trentyre," said Swan. "The focus is on restoring profitability, optimising stock replacement strategies, and reducing debt exposure."

Zimplow's management expressed cautious optimism about the second half of 2025, expecting improved liquidity conditions, enhanced export activity, and ongoing economic stabilisation efforts to support the group's recovery.

The company is targeting sustained revenue growth and a return to profitability through streamlined operations, tighter financial discipline, and sector-specific strategies to adapt to a challenging macroeconomic environment.
- newsday

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