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Zimplow Holdings says it will continue to focus on overheads rationalisation as well as grow exports to improve profitability in an economy where business conditions continue to deteriorate.Chief Executive Zondi Kumwenda in a trading update at the company’s AGM yesterday said the group would also improve efficiencies in factories and workshop.
In the quarter ending March 31 2015, group turnover increased 5 percent while profitability remain subdued because of a downturn at Mealie Brand.
Local volumes for the Animal Traction business were down 25 percent “as there has not been much excitement from the tobacco auction floors.”
Exports were only at 8 percent of last year due to a combination of factors.
“Deliveries to certain markets have been delayed while the Zambian market was affected by the weakening Kwacha. It is hoped that exports will recover in the second half of the year,” said Mr Kumwenda.
At Farmec, tractor volumes increased 37 percent and generator sets increased 21 percent compared to the same period last year.
“The trend has also been encouraging on implements, which registered a 56 percent growth against last year’s achievement.”
According to Mr Kumwenda, workshop hours disappointed at 30 percent below last year’s recovery.
Barzem whole goods volumes in the quarter recorded only 8 percent of last year’s achievement but workshop hours recovered were, however, 61 percent ahead of last year due to the use of skills in the region.
Mr Kumwenda said CT Bolts volumes for the quarter have been encouraging with mild steel bolts increasing 59 percent while HT bolts increased 115 percent.
Mild steel bolts in kgs increased 155 percent from last year’s achievement.
Meanwhile Directors and Auditors fees were approved at $103 532 and $208 054 respectively. – Wires.
Online Reporter