Nqobile Bhebhe [email protected]
ZIMPLOW Holdings is accelerating its diversification into mining and export markets to cushion earnings against a potentially severe El Niño-induced downturn in agricultural activity during the 2026/27 cropping season.
The group is investing in stock and sales support, tightening costs and protecting working capital as it seeks to sustain profitability gains recorded across several business units while reducing dependence on climate-sensitive agricultural markets.
“The Group is seized with a drought proofing and diversification strategy which includes, among other initiatives, broadening the product offering with a focus on the mining sector and extending the export sales drive to other markets,” the group said in its latest trade update.
The strategy is already yielding results, with mining-related demand supporting tyre sales and agricultural implement exports helping restore profitability at selected business units.
Farmec remained the largest contributor to group profit, with revenue rising 25,7 percent to US$10,11 million and profit before tax surging 151,9 percent to US$565 297.
Trentyre’s revenue increased 29,8 percent to US$2,18 million, driven by a 66,7 percent increase in new tyre sales to US$1,43 million. Off-the-road and farm tyre volumes rose 66,8 percent to 522 units on orders from the mining sector.
Mealie Brand returned to profitability, recording a US$96 321 profit before tax against a US$43 347 loss in the prior year.
Export revenue grew 42,8 percent to US$1,15 million, while mining-related revenue reached US$459 843, accounting for 13,4 percent of sales.
Powermec also returned to profitability, posting a US$30 362 profit before tax, supported by a 118,7 percent surge in solar and accessories revenue to US$604 852.
However, the group warned that the projected strong El Niño weather pattern could severely affect its agriculture-related businesses.
“The Board remains focused on protecting the progress made in the first nine months and on positioning the Group to trade through the 2026/27 season.”
Zimplow has also issued a cautionary statement advising stakeholders that it is in the final stages of negotiations to acquire a business operating in an industry related to the group, potentially broadening its presence in key economic sectors.
