Zimplow to leverage on NDS1
Zimplow Holdings Limited says the group is boosting its capacity utilisation to meet growing demand for the transport, mining and agriculture clusters that are seen as key enablers for achieving economic rebound as per the National Development Strategy (NDS1) aspirations.
Chief executive officer Vimbayi Nyakudya said the group has already seen growth in capacity utilization at its factories as the mining and agriculture implements maker increased production locally and cut on its import bill.
“For instance, at the Mealie Brands factory, capacity utilization was around 74 percent for the year 2021.
“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.
“We are working hard to ensure that our customers in the productive sectors get whatever they want at any given time,” said responding to questions at the group’s analysts briefing in the capital.
During the period, Mealie Brand recorded a growth in volumes in local implement sales of 10 percent against prior year performance while there was also significant growth in sales of hoes of 138 percent driven by improved capacity at the factory.
Mealie Brand recorded growth in export implements and spares volumes of 44 percent and 75 percent respectively.
Mr Nyakudya added the group was also working closely with Ministries of Agriculture, Transport and Mining as these sectors constitute its customer base.
He added the group was also geared for increased local production at its unit Barzem following its exit from the Caterpillar (CAT) franchise. This, he said, would offset any possible product supply gaps as a result of the exit.
While the CAT brand was mostly a high end brand, indications are that the group will engage a premium brand that caters for all market segments.
He said: “We will make sure we have the right capacity and equipment, skills and exposure needed so that we meet our customer needs and objectives in line with aspirations of the NDS1 (National Development Strategy).”
Meanwhile, overall, volumes of earth moving equipment sales grew by 84 percent against prior year performance. On the other hand, the focus on production by major mining houses who use CAT surface mining and handling equipment resulted in increased fleet maintenance.
As a result, parts sales grew by 75 percent and hours sold by 65 percent against prior year performance. Revenue therefore grew by 102 whilst operating profit was 109pparcwnt ahead of prior year performance.
At group level, Zimplow recorded solid performance driven by increased volumes across units with total revenue closing the year at $6,6 billion, which was 54 percent above prior year.
Operating profit rose 222 percent while profit for the year increased 25 percent to $434 million compared to $345 million achieved in the prior year.-eBusiness Weekly
