Online Reporter
Online Reporter
ZIMPLOW HOLDINGS’ flagship agricultural division, Farmec, outperformed expectations in the year-to-date (YTD) period after revenue surpassed budget by 5 percent and came in 16 percent ahead of the same period last year.
In a trading update for the period ended May 31, 2025, presented at Zimplow’s annual general meeting on Monday, group chief executive officer Mr Willem Swan said the strong performance came on the back of improved liquidity in the agricultural sector and a strategic push to stock and promote the popular MF200 series tractors.
“Tractor sales reached 61 units, exceeding the budget and more than doubling last year’s figure of 30 units, and implement sales were similarly impressive, totalling 155 units, which surpassed both the prior year’s and budget figures.
“This uptick is largely due to the easing of liquidity constraints following the delivery of tobacco to auction floors,” he said.
Zimplow Holdings, which is listed on the Victoria Falls Stock Exchange, has interests in agriculture, mining, infrastructure equipment, services and logistics and automotive sectors.
Farmec’s after-sales division saw a 59 percent growth in revenue, spurred by the procurement of more cost-effective spare parts and a robust product support campaign.
“This development has not only deepened customer loyalty but has also significantly contributed to the business unit’s profitability,” he said.
However, Farmec is facing challenges increasing inventory days for parts and implements due to fresh shipments.
Zimplow also acknowledged that aggressive debt recovery remained critical to maintaining healthy cash flow.
“With the second quarter (Q2) showing continued strong momentum and an influx of confirmed orders from tobacco proceeds, Farmec is confidently projecting an even stronger Q3 performance, reinforcing its leadership in mechanised farming solutions across Zimbabwe,” said Mr Swan.
In the period under review, Zimplow’s revenue grew by 10 percent to US$12,07 million compared to US$10,99 million in the same period in 2024.
Online Reporter