Zimbabwe: Zimplow Goes Against Covid-19 Headwinds As Subsidiaries Record Growth

Agricultural implements manufacturer, Zimplow managed to go against the Covid-19 headwinds with most of its units recording growth rates surpassing those recorded last year.

Presenting a trading update this week, Zimplow company secretary, Charles Chaibva said the group experienced whole goods volume growth across all business units except at Powermec.

He attributed the growth on the strength of environmental stability driven by currency reforms and infrastructure development projects among other positives.

"Volumes at Barzem were 13% ahead of the prior year with the product mix largely skewed towards earth moving equipment for the infrastructure development sector, unlike in the prior year where 50% of the units came from CAT gensets and lift trucks," he said.

Overall after-sales performance, driven by a 34% growth in parts sales, was ahead of the prior year despite workshop volumes losing hours due to the Covid-19 lockdown.

In the Farmec Tractor division, volumes doubled and implements were 76% ahead of the previous year while after-sales performance was 38% ahead of the prior year.

The unit continues to focus on capital allocation and working capital management to ensure that it meets the customers' farm equipment needs upon order.

The CT Bolts division has continued to develop new markets at a time when volumes across the range grew by 24% compared to the same period last year.

The Mealie Brand division saw the positive rainfall season providing a platform for volume growth.

Local implements were 39% ahead of the prior year while spares uptake improved this quarter with 86% and 68% growth against the previous year in the local and export markets respectively.

The group is closely engaging the supply chain following the general increase in steel prices experienced in the last six months.

However, only Powermec was significantly affected by reduced activity as a result of the Covid-19 lockdown. Volumes slowed down by 33% on average at both the whole goods and after-sales. The unit, however, looks forward to improved performance following the easing of the lockdown restrictions.

More From: New Zimbabwe

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