Online Reporter
Nelson Gahadza-Senior Business Reporter
DIVERSIFIED group Zimplow Holdings returned to profitability after a difficult 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, Acting chief executive 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.
He added that previously underperforming units, including CT Bolts, had returned to profitability, while efforts continued to improve Powermec’s performance and the key focus now is to sustain profitability up to year-end.
He also acknowledged that forecasts of an El Niño-induced drought during the 2026/27 agricultural season posed risks to its traditional farming equipment business, but said the company had already begun repositioning the group to reduce its dependence on agriculture.
Mr Chaibva said Millbrand, historically Zimplow’s flagship agricultural equipment business, had expanded into mining products, creating an important new revenue stream.
“The first initiative was the introduction of a mining segment product being manufactured by Millbrand. We have already seen about 200 percent growth in that revenue line this year and we expect that growth to continue through to year-end.
“We are also undertaking investment appraisal to widen our offering in that space so that the business unit does not significantly suffer from agriculture-related downturns,” he said.
He said lessons from 2024, when Millbrand was a major contributor to group losses, had prompted management to diversify revenue sources.
Mr Chaibva said the group’s broader mining portfolio continued to perform strongly, with businesses such as CT Bolts Centre and Trentyre benefiting from increased investment across Zimbabwe’s mining industry.
“All eyes within the business have been focused on the mining segment because that market continues to grow,” he said.
He added that logistics operations under Scanlink and expanded after-sales services would provide additional earnings resilience as the group diversified away from seasonal agricultural demand.
To stimulate equipment sales, Zimplow has also introduced a US$3 million customer financing facility in partnership with commercial banks, enabling farmers and mining clients to purchase machinery on credit.
“What we have done is institute customer financing arrangements through banks as well as internally to enable customers to secure our equipment on credit,” Mr Chaibva said.
“In our business, having stock on the ground is critical. Customers need equipment when they need it, and we have ensured that our inventory positions support that.”
The Acting CEO said the group’s restructuring programme, launched in 2025, had now reached its final phase, leaving the business with a leaner cost base capable of supporting future growth.
He also welcomed the country’s improving macroeconomic environment, particularly exchange rate stability and easier access to foreign currency through the willing-buyer, willing-seller market.
“We have witnessed stable currency as well as accessibility to foreign currency. The willing-buyer willing-seller platform has been very pivotal in enabling us to access foreign currency, particularly for ZiG-related transactions,” he said.
Mr Chaibva said the group’s confidence was further supported by a healthy order pipeline.
Farming machinery distributor Farmec has an order book exceeding US$5 million, while the entire group’s order book stands at close to US$10 million.
“Our desire is to close as much of that order book as possible during the current financial year,” he said.
“We have maintained strong customer relationships, and together with our financing solutions, we believe we are well positioned to convert those orders into revenue.”
