Online Reporter
Nelson Gahadza
Senior Business Reporter
DIVERSIFIED group Zimplow Holdings returned to profitability after a difficult financial year in 2025, driven by new business lines, tighter cost controls and growing exposure to Zimbabwe’s mining sector.
Presenting a trading update at the company’s Annual General Meeting (AGM), Acting chief executive officer (CEO) Mr Charles Chaibva said the group posted a consolidated profit before tax of US$426 267 for the five months ended May 31, 2026, compared to a loss before tax of US$708 272 during the same period last year, representing a positive swing of about US$1,13 million.
“Revenue rose 13 percent to US$14,26 million, while gross profit margins improved to 27 percent from 24 percent, reflecting stronger operational execution, improved pricing discipline and the benefits of restructuring measures implemented last year,” he said.
He added that the improved performance was underpinned by a stronger 2025/26 summer agricultural season, sustained activity in the gold mining sector, growth in higher-margin after-sales services and improved working capital management.
“The performance also reflects the success of restructuring initiatives undertaken in 2025, including workforce rationalisation, optimisation of the branch network, diversification of revenue streams and tighter cost management. Profit before tax was 51 percent ahead of the board-approved budget for the period,” said Mr Chaibva.
Zimplow also strengthened its financial position, ending the period with cash holdings of US$1,35 million, well above its internal target of US$800 000.
Speaking to journalists after the AGM, Mr Chaibva said the group’s focus had now shifted from restoring profitability to ensuring the turnaround remains sustainable.
“Our turnaround is going to be mainly anchored on the new business offerings that we have at the moment.
“We have an acquisition that is in the pipeline that we are working on. Secondly, within our business units, we have built resilience, particularly through investment in stockholding. Most of our business units have sufficient stock to carry us through to year-end,” he said.
Mr Chaibva said protecting margins had become a central pillar of the group’s strategy after years of profitability being eroded by rising costs.
“We have refined our margins, which have been a key problem within the group, and we have been focused on ensuring that we protect those margins,” he said.
Zimplow is a leading distributor of global brands in the agriculture, mining and infrastructure, logistics and automotive industries.
