Zimplow PAT surges to $110,6m

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LISTED manufacturer and distributor of farming implements, Zimplow, says its profit-after-tax (PAT) rose from $100,6 million from $35,4 million for the year ended December 31 2019 through a mix of exports and local products sold by the company.

Zimplow operates five business units, namely Barzem, Mealie Brand, Powermec, CT Bolts and Farmec.

In a financial statement, board chairman Thomas Chataika said the group experienced a mixed volume performance with Powermec and Mealie Brand recording an increase in volumes, while volumes dropped for Farmec, Barzem and CT Bolts.

“The group had a strong financial year with a turnover up from $272,9 million in 2018 to $504,1 million in 2019.
Volume performance was mixed across the group with Powermac and Mealie Brand increasing their volumes while Farmec, Barzem and CT Bolts suffered some volume reduction. Through a good mix of exports and local products sold the company was able to surpass prior year profitability in real terms. Profit after tax came in at $100,6 million from $35,4 million in the prior year,” he said.

Chataika said Farmec tractors, parts and implements sales were down by 37% and 22%, respectively. However, revenue increased by 73% to $172,1 million for the year ended December 31, 2019.

“Farmec revenues were up from $99,1 million to $172,1 million. The business sold 104 tractors which were down 37% from 2018. Parts and implements sold were down 22% on prior year.”

He added that Mealie Brand benefited from strong export sales, which were up 62% from the previous year, enabling the brand to have exchange gains while other group companies had a share of the foreign currency.

“Mealie Brand had a strong year, with revenues up from $70 million to $112,8 million. The division benefited from strong export sales which were up 62% on prior year. Export sales enabled the division to have exchange gains while also providing forex for other group companies. The business achieved a profit-after-tax figure of $55,9 million up from $17,1 million,” he said.

Due to the ongoing electricity shortages, generator sales doubled from 49 to 102 while service hours sold rose 28% to 3 840.

Revenues grew from $22,9 million in the prior year to $51,6 million and PAT improved from $1,4 million in 2018 to a PAT of $4,1 million.

CT Bolts revenues were up from $10,2 million to $16,2 million despite the overall volumes being down 26% to 299 tonnes.

Barzem’s turnover went up from $71,2 million to $150,6 million. Profit-after-tax came in at $36,3 million up from $4,1 million in the prior year

Zimplow Limited, incorporated in 1939, is the largest manufacturer and distributor of farming implements in sub-Saharan Africa and operates through four divisions, namely, Barzem, Mealie Brand, CT Bolts and Farmec.
The company also manufactures and distributes metal fasteners for the mining, construction and agricultural industries.