Zimplow cuts losses by 70%

Published: 07 October 2025

Zimplow Holdings Limited has reported a significant reduction in losses for the first half of 2025, narrowing its deficit to US$499,500 - a 70% improvement from the US$1.66 million loss recorded during the same period last year.

The improvement follows a series of aggressive cost-cutting measures, including staff reductions, streamlined administrative expenses, and the disposal of outdated equipment. The company also sold its Dagenham Road property, with proceeds channelled toward developing a new mining and logistics hub in Msasa.

Zimplow's strategic shift toward the mining sector forms part of its broader effort to reduce reliance on the volatile agricultural industry. However, the group remains cautious as forecasts of below-average rainfall threaten the performance of its agriculture-focused subsidiaries, Farmec and Mealie Brand, both heavily dependent on rain-fed farming.

Analysts warn that adverse weather conditions could weaken sales and exert financial pressure through rising inventory levels, particularly from trade loans, which may increase storage costs and force price adjustments.

Despite the agricultural challenges, Zimplow's mining-related operations remain strong. Subsidiaries such as Scanlink and Tractive Power Solutions continue to post solid results, supported by sustained demand for heavy equipment in Zimbabwe's growing mining sector. Meanwhile, Powermec has benefited from heightened demand for solar-powered generators amid persistent electricity shortages worsened by drought conditions.

In response to climate risks, the company is exploring drought-adaptive innovations, including modular irrigation kits and scalable solar power solutions, as part of efforts to diversify its revenue base.

However, smuggling remains a major challenge for subsidiaries Trentyre and CT Bolts, where the influx of cheaper grey market imports continues to erode revenues.

Overall, Zimplow's disciplined cost management, diversification strategy, and pivot toward mining and renewable energy solutions have positioned the group for a potential recovery in the second half of 2025 - provided it successfully navigates Zimbabwe's difficult economic and regulatory environment.
- NewZimbabwe

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