DIVERSIFIED concern Zimplow Holdings Limited (Zimplow) will deepen its focus in the agricultural sector for an improved financial performance in 2026, following the firm narrowing its loss-making position by 77,34% as its turnaround plan successfully takes shape.
In its financial year ended December 31, 2025, Zimplow reported a loss of US$489 704 compared to the prior year’s US$2,16 million losses.
This comes as the group recorded revenue growth of 13%, achieving total revenue of US$33,54 million compared to US$29,77 million in the prior year.
Zimplow’s earnings were further supported by the firm reducing its administrative costs by nearly 17%, making savings of about US$1,68 million.
With these cost-cutting measures enforced and revenue recording double-digit growth, Zimplow is now focused on capitalising on the gains for its current financial year ending December 31, 2026.
“The group looks forward to an improved financial performance in 2026 anchored by the agriculture related business units on the back of an encouraging 2025/2026 weather pattern,” Zimplow chairman Benjamin Kumalo said in a statement attached to the firm’s annual financial results for the period ended December 31, 2025.
“Mealie Brand and Farmec are the key flagship businesses within the group. The 2025/2026 weather pattern is projected to be normal to above normal.”
Mealie Brand is a farm equipment supplier, while Farmec is Zimplow’s flagship brand for mechanised agriculture equipment.
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Regarding Mealie Brand, last year reflected a recovery trajectory, with an operating loss incurred in the first half of the year, but offset by a return to profitability by year-end at US$275 165 profit before tax.
This was driven by strategic initiatives including the introduction of lower-priced second-tier products, enhanced procurement efficiencies, improved factory performance, and concerted cost containment.
“Volumes grew significantly across key product lines, with implements increasing by 88% (local) and 81% (export), and spares by 73% (local) and 32% (export), while hoes exceeded expectations due to improved availability and strong brand preference,” Kumalo said.
For Farmec, the business achieved solid revenue growth of 13%, underpinned by strong execution anchored on the availability of Massey Ferguson 200 series tractor units, which accounted for 78% of total tractor volume sales.
“The units were procured by way of a line of credit that was secured through a local financial institution, ensuring a consistent supply. Parts sales recorded a strong recovery, generating total revenue of US$$2,16 million, which was 20% above the prior year, driven by effective supply chain management,” Kumalo said.
“In addition, efforts to improve response rates and enhance customer experience resulted in a 47% increase in service hours during the period under review.
“The business unit closed the year with a commendable profit before tax of US$418 923, reversing the prior year’s loss position.”
While inventory holdings remain high, particularly in high-horsepower tractor stock, Zimplow had liquidation plans for the just-ended first quarter, with improved debtor management strategies already showing results.
“Our priorities for 2026 are as follows. 1. Deepen focus on the agricultural sector: Agriculture remains our most profitable and stable segment,” Zimplow chief executive officer Willem Swan said.
“We will continue to invest in product availability, after-sales support, regional expansion and cost-efficient procurement, while strengthening the infrastructure equipment repairs portfolio to reduce exposure to weather-related adverse conditions.”
Following agriculture, the business has prioritised restoring margin and operational discipline across mining & logistics, strengthening cash generation and working capital cycles, enhancing group-level capital structure and cost efficiency, and driving customer-centric excellence.
