DIVERSIFIED concern Zimplow Holdings Limited is projecting stronger performance for the remainder of the year, underpinned by a favourable agricultural season and sustained activity in the mining sector.
This comes as Zimplow’s management anticipates that deliveries of tobacco and other crops in the second quarter, together with the introduction of customer-centric financing solutions across the group, will stimulate demand across its operations.
In March, the company revealed that it would deepen its focus on the agricultural sector to improve financial performance in 2026, after narrowing its loss-making position by 77,34%, as its turnaround plan begins to bear fruit.
Zimplow operates several subsidiaries across agricultural equipment, mining and infrastructure, logistics, and automotive, as well as property holding segments.
“Management expects the group’s outlook for the remainder of FY2026 to be underpinned by the favourable agricultural season with the delivery of the tobacco and other crops in Q2 2026, further buttressed by the introduction of customer — centric financing options across the group,” Zimplow said in a trading update for the first quarter, March 31, 2026.
“Sustained mining sector activity, supported by elevated gold prices and ongoing investment in Zimbabwe's gold mining infrastructure, is expected to support demand across Trentyre’s off-the-road tyre segment, Mealie Brand’s mining consumables offering, and CT Bolts’ mining customer base. Management is actively developing its capabilities in this sector across multiple business units.”
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The turnaround plan appears to be bearing fruit, with the group returning to profitability during the review period after posting a profit before tax of US$114 921, compared to a loss of US$596 424 in the same period last year.
This was supported by improved revenue, which rose 15% to US$8,44 million during the period compared to the prior year.
“The group’s return to profitability in Q1 FY2026 reflects the structural improvements implemented during FY2025, including staff rationalisation, branch optimisation, the diversification of revenue streams across several business units, and a more disciplined approach to working capital management,” Zimplow said.
“The gross margin recovery from 23% to 26% is particularly encouraging and reflects an improved after-sales performance and product mix across Farmec, Trentyre and Scanlink.”
Farmec delivered the strongest individual performance in the group during the quarter under review, with total revenue growing 35% compared to the prior period, driven by broad-based demand recovery across all revenue lines.
“The business unit returned to a pre-tax profit, a substantial improvement from a pre-tax loss in Q1 FY2025, and made the largest contribution to the group’s profitability,” Zimplow said.
Tractor revenue rising 22% helped this Zimplow unit’s growth.
“The business unit is focused on maintaining the financial performance up to year-end,” Zimplow said.
Meanwhile, Trentyre recorded 30% revenue growth compared to Q1 FY2025, with new tyre revenue surging 112% year-on-year, largely driven by strong off-the-road tyre volumes.
This was underpinned by sustained mining sector activity, improved penetration into key mining accounts, and the successful execution of strategic supply contracts.
Regarding Scanlink, the unit recorded improved after-sales performance during the review period, with its profitable divisions posting strong results.
“Parts revenue grew by 20% against the prior year, underpinned by management's efforts to attract new customers, re-engage previously inactive accounts, and secure supply tenders in the government and mining sectors,” Zimplow said.
“Parts margins improved to 38% from 35% in the prior year, benefiting from economies of scale achieved through bulk procurement and a reduction in vehicle-off-road incidents consequent upon improved parts availability and consistent supplier funding.”
However, whole goods revenue declined 40% compared to the prior year, reflecting the high base effect of strong vehicle sales recorded in the first quarter of last year.
“The business unit secured sales of four Scania buses and four trucks during the quarter,” Zimplow said.