Zimplow revenue jumps 14pc, but fails to steer group to profit

Michael Tome

Business Reporter

Farming and Mining equipment manufacturer Zimplow reported a 14 percent year-on-year revenue growth to US$7,06 million, although this could not prevent the group from incurring a net loss before tax of US$513 000.

The company’s various business units recorded a mixed performance.

Under the agricultural equipment and service sector, Mealie Brand’s year-to-date revenue fell by 11 percent short of budget, with local sales declining 27 percent due to market liquidity challenges and competition from grey imports.

However, exports showed resilience, growing 20 percent compared to the previous year.

In contrast, Farmec exceeded expectations, achieving a turnover six percent above budget for the quarter, driven primarily by increased tractor sales, particularly the popular MF200 series.

The logistics and automotive business unit demonstrated strong growth, with Scanlink recording a 44 percent year-to-date increase in revenue compared to the prior year and 40 percent above budget.

This impressive performance was fuelled by a surge in parts and service hours, as well as significant sales of buses and trucks.

Conversely, the Trentyre business unit faced challenges, with a 39 percent decline in sales compared to the previous year and a 32 percent underperformance against budget.