Source: Zimplow Mealie Brand implements export records 26 percent growth | Sunday News (Business)
Judith Phiri, Business Reporter
LISTED mining and agriculture implements supplier, Zimplow Holdings Limited’s Mealie Brand recorded a 26 percent growth in the provision of export implements to its clientele against prior year performance, while more demand of their products is expected during the rainfall season.
In a trading update for the nine months’ period ended 30 September 2022, the company said it continues to place considerable emphasis on the export market.
“In this respect, the company is consolidating its market positioning in the SADC region. The company recorded a 26 percent growth in the provision of export implements to its clientele against prior year performance. Thus, the generation of foreign currency continues to drive the business unit’s performance from an overall perspective. The company has earmarked the introduction of a number of new products for the fourth quarter of 2022 in order to boost its revenues.”
Zimplow Holdings said it recorded an 11 percent increase in revenue compared to prior year same period thus demonstrating the group‘s ability to adapt and respond in tandem with the challenging operating environment, while the revenue figure excludes Barzem Enterprises (Private) Limited.
It said management shall leverage on increased activity within the fourth quarter of 2022 in the economic sectors that the group operates in, that include agriculture, mining and logistics in order to achieve improved profitability levels.
In terms of logistics, automotive products and service, the company said: “Scanlink parts sales increased by seven percent and service hours grew by nine percent. The Company continues to increase its footprint on the local market thus boosting group revenue.”
Zimplow Holdings said under Trentyre volumes in retreads for commercial and consumer tyres recorded a 60 percent increase in the third quarter in comparison to prior year same period. The company said during the quarter under review it installed a second chamber for purposes of retreads and this development has significantly increased production levels in so far as retreads are concerned.
Mealie Brand
The company added: “Under Powermec client appetite for alternative power sources such as solar power and generators increased significantly in the period under review due to continued depressed power provision at a national level. Part sales and service increased by 24 percent and 70 percent respectively in comparison to the same period in the prior year.”
Zimplow Holdings said for its mining, infrastructure equipment and service business unit, Barzem, it has largely been operating in care and maintenance and ceased to be the Caterpillar (CAT) distributor as of 30 September 2022. The company said they were at an advanced stage of securing new original equipment manufacturers (OEMs) to replace CAT.
However, for Farmec, Zimplow said tractors and implements volumes decreased by four percent and nine percent respectively.
“Service capacity utilisation increased by 45 percent when compared to same period in the year 2022. The group is confident that Farmec will make a notable contribution as it relates to the group financial performance, in light of the commencement of the farming season.”
Another decrease of one percent was recorded in CT Bolts and the company said it continues to penetrate new market segments in the various domestic economic sectors thus bolstering its thrust to deliver customer centric services in the provision of fasteners and in turn a positive financial performance.