“Zimplow Cuts Plough Costs by 23% to Boost Regional Growth”

Chronicle Writer

Zimplow Holdings Limited, a diversified supplier of agricultural, mining, and infrastructure equipment, says its Mealie Brand unit has reduced plough costs by 23 percent, with management anticipating further efficiencies to boost product uptake both locally and regionally.

In its trading update for the period ended 30 September, the Victoria Falls Stock Exchange-listed firm stated that the onset of the rainy season has brought a higher level of positivity across the economic sectors in which the Group operates.

Increased liquidity from wheat deliveries and timely GMB payments in the agriculture sector are expected to lead to increased business volumes.

“Mealie Brand has successfully reduced the cost of its plough by 23 percent, and management expects further efficiencies to ensure successful uptake of Mealie Brand products both locally and in the region.

“The Group is undergoing a transformation to improve service levels at more competitive prices, to regain market share in the business-to-business sector against the emerging informal sector,” reads the update.

It was noted that stock levels are generally good and the sales pipeline is healthy across all Group business units.

In the period under review, the Group recorded revenue of US$20.6 million, 12 percent below that for the comparative period last year.

The performance, although below the prior year, improved in the period under review, with most business units showing a positive trend towards profitability from the commencement of the third quarter, against the backdrop of a loss before tax of US$1.4 million as of 30 June 2024.

Zimplow manufactures and markets a diverse range of products for Zimbabwe’s construction, infrastructure, and agricultural sectors.

It also manufactures and distributes metal fasteners for the mining, construction, and agricultural sectors and has interests in property management and leasing.