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Zimplow projects boom as demand firms

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BY MELODY CHIKONO

LISTED agro-industrial outfit Zimplow Holdings Limited yesterday said export volumes increased during the five months to May, as government eased COVID-19 restrictions.

The firm projects improved demand for its products during 2021.

Zimplow chairperson Godfrey Manhambara said the export market showed strong signs of recovery with implements and spares volumes increasing by 137% and 186%, respectively, against prior year.

“We are closely looking at the increases in the price of steel and factory efficiencies in order to meet the projected demand for Mealie Brand products,” Manhambara said, referring to one of the group’s key products.

“Mealie Brand recorded sales volumes growth across its product range. Local implements sales were 93% ahead of prior year.”

He said Zimplow had lined up strategies to leverage on projected positive economic recovery this year.

During the period, Zimplow’s business units recorded significant growth, with Farmec beginning the year positively as volumes improved following a good agricultural season and better tobacco and grain prices.

Tractor and implement sales volumes grew by 119% and 97%, respectively against prior year.

Parts sales volumes grew by 38%, while workshop capacity utilisation improved by 6% against prior year.

Another business unit, Barzem, recorded a 140% growth in earthmoving equipment sales, backed by activity in the construction sector.

Manhambara said the unit continued to sustain performance by following through its strategy to improve response times.

CT Bolts has seen a continued growth trajectory since the interventions and strategies implemented in 2019.

“Management has consistently organised the business unit’s value chain to ensure that our customers receive quality products and services as espoused in our Zimplow brand promise. As a result, volumes grew by 52% against prior year for the period under review,” Manhambara said.

He said Powermec’s stability on the grid had been positive.

“Hence genset volumes and hours sold reduced by 24% and 13% compared to prior year. The business unit continues to focus on routine maintenance and market development as it adjusts to the new operating levels,” he said.

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