By Alois Vinga
LISTED mining and agriculture implements supplier, Zimplow Holdings Limited, has defied the headwinds to record growth across its segments.
Presenting a trading update for the first quarter of 2022, company secretary, Sharon Manangazira said despite the inflationary headwinds experienced during the period coupled with the Russia/Ukraine disturbances, the group managed to see growth across segments.
“The group recorded a 5% and 48% growth in revenue and profitability in real terms respectively, despite the challenges obtained in the domestic operating environment.
“The board is encouraged by the resilient performance as management continues to take advantage of pockets of opportunities in the market given the diversified structure of the group,” she said.
In the agricultural segment, the Farmec unit recorded significant growth in volumes across all product lines. Tractors and implements volumes increased by 53% and 13% respectively.
Parts sales and service capacity utilisation increased by 7% and 51% respectively against prior year and same period under review amid expectations to continue driving group performance given the firm demand experienced in the first quarter of 2022.
At Mealie Brand, the growth in export implement volumes at 26% was ahead of prior year and set to a positive start, despite local implements volumes dropping by 15% against the same period last year.
“The erratic rainy season and hyper-inflationary environment has dampened uptake of animal drawn implements locally.
“Farmers have therefore relied on maintenance of their existing implements resulting in the growth of spares sold by 41% against prior year respectively,” said Manangazira.
In the mining and infrastructure segment, Barzem performance for the quarter was restricted by foreign currency bottlenecks resulting in depressed volumes of earth moving equipment at 88% below last year’s performance for the first quarter.
The CT Bolts division continues to be on a growth trajectory, with a 25% increase in tonnage of fasteners sold compared to the same period in the prior year with focus on the core business, which is delivering quality and reliable fasteners to the sectors we operate in has so far driven CT Bolts performance.
Powermec saw volumes in gen-sets and solar equipment reaching 44% ahead of prior year whilst capacity utilisation increased by 71% with the top line improving by 230% in comparison to the same period in the prior year.