Improved market conditions and additional earnings from recently acquired African Traction and Associated Technologies (Afritrac) spurred Zimplow revenues by 26% to $15,5 million for the full-year ended December 2011.
In 2010, one of the countrys largest makers and distributors of agricultural implements recorded total revenues of $12,3 million.
Last year Zimplow acquired 49% of a South African animal traction distribution company, Afritrac.
Afritac contributed $1,5 million to turnover and $145 000 to income before tax, over a ten month period.
Zimplow chief executive officer Zondi Kumwenda told an analysts briefing last week domestic and foreign revenues were up 30% and 17% respectively.
The company plans to grow by 20% with the new acquisition in 2012, said Kumwenda.
Zimplow net income before tax for the period under review was $3,64 million compared to $2,92 million the previous year.
Net cash flow from operating activities decreased from
$2,2 million in 2010 to $1,8 million as a result of to an advance corporation tax payment of
Kumwenda said huge wage demands were likely to exert more cost pressures.
The full impact of electricity tariff increases of 51% by the Zimbabwe Electricity Supply Authority and increases in all utilities will be fully felt in 2012. Additionally, rainfall patterns in the region have been erratic, said Kumwenda.
He said the group would pursue growth strategies aimed at improving local and regional competitiveness.
Mealie Brand volumes increased by 27% to 74 000 implements as compared to 59 000 implements in 2010. Spare parts volumes decreased by 11% in 2011 when compared to 2010. CT Bolts mild steel volume sales were up 15% to 146 tonnes from 127 tonnes.
Mild steel bolts in units increased by 34% in 2011 while high-tensile bolts in units substantially increased by 87%.
Tassburg volume sales increased by 47% to 107 tonnes for the 12 months ended 31 December 2011 as compared to 73 tonnes for the same period in 2010.