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Nelson Gahadza
Senior Business Reporter
Diversified agro-concern, Zimplow Holdings says it is engaged in new initiatives to return the business to profitability in 2024, riding on the back of strong order books across the agriculture, logistics, and mining sectors.
According to the group’s financials for the interim to June 30, 2024, the El Nino-induced drought impacted the group’s flagship business units in the agriculture cluster, which also witnessed a significant reduction in volumes.
“The group has pivoted towards a more targeted approach to generating sales, relying on system-driven demand forecasting, direct marketing, and rationalisation of stock holdings and suppliers,” acting group chief executive Mr Willem Swan said in a statement of its financials.
Zimplow manufactures and markets a diverse range of products for the construction, infrastructure, and agricultural sectors in Zimbabwe. It also manufactures and distributes metal fasteners for the mining, construction, and agricultural sectors and has interests in property management and leasing.
As part of efforts to navigate the El Nino-induced challenges, the group is embarking on a cost containment plan to preserve cash flow.
The initiatives include a group-wide staff rationalisation exercise and an organisational restructuring exercise that will result in the unbundling of the clusters approach to enable the group to benefit from operational efficiencies within separated business units.
Bongani Ndlovu
Online Reporter