ZIMPLOW Holdings Limited (Zimplow) recorded a US$1,13 million profitability turnaround, posting a profit before tax of US$426 267 for the five months ended May 31, 2026, as improved 2025/2026 rainfall boosted demand for its agricultural equipment, implements and spare parts.
In the prior comparative five-month period, the group recorded a loss of US$708 272.
Zimplow operates several subsidiaries under its agricultural equipment, mining and infrastructure, logistic and automotive, and property holding segments.
“Our return to profit reflects the cumulative effect of the restructuring we carried out in FY2025: workforce rationalisation, optimisation of the branch network, diversification of revenue within the individual businesses, and tighter working capital discipline,” Zimplow said in its trading update for the five months ended May 31, 2026.
Revenue grew 13% to US$14,26 million while the gross margin widened by 3 percentage points.
“The margin recovery comes from a deliberate shift toward higher margin aftersales revenue at Farmec, TrenTyre and Scanlink.
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“Profit before tax of US$426 267 is 51% ahead of the board approved budget for the period and a substantial turnaround from last year’s loss.
“Cash at May 31 stood at US$1,35 million, 69% above the US$800 000 target, and every dollar of that net cash was generated internally.”
Farmec emerged as the group’s strongest profit contributor, growing revenue by 29% and recording a profit before tax of US$291 000 against a budgeted profit of US$160 000.
Zimplow said Farmec’s performance was broad based as whole goods revenue grew 27%, workshop service hours rose 47%, and parts revenue came in 12% above budget at margins above 60%.
“The strategy of growing the aftersales base is working; workshop hours of 5 177 for the period compare with a budget of 4 034 and 3 531 a year ago, which tells us that the customer relationship investment of earlier periods is translating into repeat aftersales business,” Zimplow said.
“Farmec was profitable in the period, against a loss a year ago. The business is well positioned for the second half selling season.”
Farmec is the group’s flagship brand for mechanised agriculture equipment.
Mealie Brand, manufacturer of high-quality agricultural implements and spares, also moved into profit, posting US$17 000 against a budgeted loss of US$299 000.
“Mealie Brand grew revenue by 25% on the prior year, helped by the broad recovery in agricultural demand as rainfall returned to normal,” ZImplow said.
“The diversified model we introduced during FY2025, designed to reduce the unit’s sole dependence on domestic agricultural revenue, delivered real results.”
The group said it was entering the second half of the year with a concrete funded revenue pipeline.
“Proceeds from the 2025/2026 cereal harvest should start flowing into the agricultural economy, and the winter wheat crop which is well advanced and well watered should sustain farmer cash flow into the second half.
“This, more than tobacco, is the agricultural demand engine for Farmec and Mealie Brand in the months ahead.”
Farmec holds 63 tractors in production under a bank facility, with further goods in transit for delivery in the third quarter.
“Scanlink carries a 27-unit vehicle pipeline. CT Bolts has 13 containers of wholesale stock in production for the third and fourth quarters. Powermec has 23 generator sets available, against 16 sold in the first five months,” Zimplow said.
“Our cost containment programme, including the ongoing staff rationalisation exercise, carries further savings into the second half run rate, and the group financing facilities we are putting in place will strengthen working capital as the sales cycle intensifies.”