Zimplow remains profitable despite headwinds

LISTED mining and agriculture implements maker, Zimplow Holdings says 2021 has been key in unlocking opportunities that triggered growth in capacity utilisation, with most of its units ending the year at close to full
capacity.

This came as a result of the group’s ability to develop new products locally, cutting on its import bill.

Zimplow chief executive, Vimbayi Nyakudya told an analysts briefing on Tuesday that the group had seen growth across all its business units underpinned by the drive to unlock shareholder
value.

“If we look at the Mealie Brands factory, for the year 2021 we were around 74%. This year we unlocked some of those opportunities that we are talking about in terms of stability to develop or put new products in the market, like trailers which we used to import. Some of that equipment we are now able to produce locally. We also used to import bowsers and rely on other suppliers for such kind of equipment but we are now able to supply ourselves,” he said.

During the period, Mealie Brand recorded a growth in volumes in local implement sales of 10% against prior year performance while there was also significant growth in sales of hoes of 138% driven by improved capacity at the factory.

The unit recorded growth in export implements and spares volumes of 44% and 75%, respectively.

Nyakudya said the group was developing more on the Mealie Brand.

On the workshop perspective, Nyakudya said last year the group managed to grow hours sold by 83%.

“If you look at the factories’ trade time we were at 72%, it’s not a small number considering where we were coming from. At some stages the factories were operating below 50% capacity and we are increasing the capacity for our factories to ensure that we meet them at the right value from Zimplow,” he said.

Workshops under the group’s mining unit operated full throttle as hours sold from the earthmoving perspective grew 75% while in alternative power the group saw a 22% growth in hours sold.

During the year, the group also completed acquisition of Scanlink and Trentrye, which contributed significantly to the group’s overall profitability.

In a statement accompanying its financial results for the year 2021, the group said it continued to strengthen its capability and capacity to respond to changes in the operating environment.

Revenue grew 54% while the operating profit grew by 222% compared to prior year.

The group is confident that the capacity built over the years in terms of goodwill and trust in its backup infrastructure and other key elements will be vital in resetting the mining and infrastructure cluster.-newsday