Rain season to boost Zimplow agriculture cluster

28 Nov, 2022 - 00:11 0 Views
Rain season to boost Zimplow agriculture cluster Rain season to boost Zimplow agriculture cluster

eBusiness Weekly

Business Writer

 Diversified agro-focused group, Zimplow Holdings, says the rainfall season will drive demand for the group’s products under the agriculture cluster while infrastructural development across the economy will boost the group’s mining and infrastructure clusters. 

Furthermore, the group noted that continued national strategic thrust on infrastructure development coupled with the continued drive in output growth in the mining sector by the Government, bodes well for the group’s logistics and automotive sector. 

Zimplow manufactures and markets a diverse range of products for the construction, infrastructure and agricultural sectors in Zimbabwe. It also manufactures and distributes metal fasteners for the mining, construction and agricultural sector, and has interests in property management and leasing.

Sharon Manangazira, the group’s secretary in a trading update for the quarter to September 30, 2022 said the group recorded an 11 percent increase in revenue compared to the same period, demonstrating ability to adapt and respond to the operating environment.

“The revenue figure excludes Barzem Enterprises. Management shall leverage on increased activity within the fourth quarter of 2022, within the economic sectors that the group operates in, that is agriculture, mining and logistics in order to achieve improved profitability levels,” she said.

Under the agricultural equipment and service cluster, tractors and implements volumes at Farmec declined by 4 percent and 9 percent respectively while service capacity utilisation increased by 45 percent compared to the same period in 2022. 

“The group is confident that Farmec will make a notable contribution as it relates to group financial performance in light of the commencement of the farming season,” she said. 

Mealie Brand, according to Manangazira, continues to place considerable emphasis on the export market and in this respect the company is consolidating its market positioning in the SADC region.

During the period under review, 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,” she said.

Scanlink which falls under the logistics and automotive products and service cluster saw parts sales volumes for the quarter increasing by 7 percent and service hours grew by 9 percent.

Manangazira said the company continues to increase its footprint on the local market, boosting group revenue.

Trentyre volumes in retreads for commercial and consumer tyres recorded a 60 percent increase and this was a result of the newly installed second chamber for purposes of retreads. 

Manangazira said Barzem has largely been operating in care and maintenance and ceased to be the CAT distributor during the period under review. 

CT Bolts recorded a 1 percent decrease in tonnage but the company continues to penetrate new market segments in the various domestic economic sectors, bolstering its thrust to deliver customer centric services in the provision of fasteners.

Powermec’s client appetite for alternative power sources such as solar power and generators increased significantly due to continued depressed power provision at national level.

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