Online Reporter
Nelson Gahadza
Senior Business Reporter
Diversified agro-industrial group Zimplow Holdings Limited’s strategy for 2026 entails focusing on strengthening its agricultural segment, restoring healthy margins in underperforming units and tightening cash management.
This comes as the company builds on improved financial performance recorded in the year ended December 31, 2025.
Group chief executive officer Mr Willem Swan said the priorities reflect a deliberate shift towards operational discipline and sustainable growth, following a year in which the group significantly narrowed its losses despite operating in a constrained economic environment.
“Agriculture remains our most profitable and stable segment. We will continue to invest in product availability, after-sales support, regional expansion and cost-efficient procurement, whilst strengthening the infrastructure equipment repairs portfolio to reduce exposure to weather-related adverse conditions,” he said.
According to Mr Swan, the focus is underpinned by strong performances in key agricultural units such as Mealie Brand, which delivered a turnaround in the second half of the year, closing with a profit before tax of US$275 165 after recording a loss in the first half.
“The recovery was driven by targeted interventions including the introduction of lower-priced product tiers, improved procurement efficiencies and enhanced factory performance,” he said.
The group’s financial results for 2025 show that volumes surged across major product lines, with implements increasing by 88 percent locally and 81 percent in export markets.
Spares also recorded strong growth, rising by 73 percent locally and 32 percent in export markets, while hoes performed above expectations due to improved availability and strong brand demand.
Two-wheel tractor volumes rose by 39 percent, reflecting increased mechanisation among smallholder farmers, while the unit also began penetrating the mining segment.
Farmec also contributed positively, achieving 13 percent revenue growth and returning to profitability with a US$418 923 profit before tax.
“The performance was supported by consistent availability of MF200 series tractor units, which accounted for the bulk of sales, as well as strong growth in parts and service divisions.
“Parts revenue rose by 20 percent to US$2,16 million, while service hours increased by 47 percent, reflecting improved customer engagement and after-sales support,” said Mr Swan.
However, he noted that inventory levels remain elevated, particularly in high-horsepower tractor stock, although liquidation plans for early 2026 are in place alongside strengthened debtor management measures.
Beyond agriculture, the group is prioritising the restoration of margins and operational discipline in its mining and logistics-related businesses, some of which weighed on overall performance during the year.
Mr Swan said turnaround programmes in CT Bolts and Trentyre would be executed with urgency, while Powermec and Scanlink are being repositioned for sustainable growth.
Revenue was flat at CT Bolts, at US$1,2 million, due to long lead times, although margins improved slightly to 53 percent.
Mr Swan said the company is focusing on improving stock availability, tightening debtor enforcement and refining pricing strategies to support growth.
During the year under review, Trentyre faced a more challenging environment, with revenue declining by 19 percent as a result of reduced tyre volumes, supply chain bottlenecks and increased competition from informal market players.
Mr Swan said delays at Beira Port exacerbated stock shortages, while direct sourcing by informal traders intensified pricing pressures.
“In response, the business has adjusted its pricing model and is pivoting towards the off-the-road tyre segment, which began to show positive momentum towards year-end. The unit also reduced operating expenses by 28 percent, demonstrating improved cost discipline,” he said.
Powermec, on its part, recorded a marginal 2 percent decline in turnover and a loss before tax of US$92 446, due to stock gaps caused by delayed shipments of generator units.
However, Mr Swan said the business is accelerating its shift towards renewable energy, with solar revenue growing by 193 per cent, positioning it for improved performance in 2026.
During the period under review, Scanlink emerged as a strong performer, with profit before tax increasing to US$248 477 from US$65 533 in the prior year.
Vehicle volumes rose by 47 percent, supported by sustained demand for trucks and buses, while service hours grew by 5 percent due to enhanced after-sales capabilities.
Mr Swan said that although parts revenue declined slightly due to competition from aftermarket suppliers, the unit maintained its market presence through disciplined pricing and customer engagement.
He said the group also undertook portfolio rationalisation measures during the year, including the closure of Tractive Power Solutions following the termination of a key distribution agreement.
The unit recorded a significant decline in revenue and a loss before tax of US$366 200 before being mothballed.
“Its FAW business was transferred within the group to ensure continuity of service, reflecting management’s focus on reallocating resources towards more viable operations,” said Mr Swan.
Overall, Zimplow recorded a 13 percent increase in revenue to US$33,54 million from US$29,78 million in the prior year.
The group also posted a loss before tax of US$492,180, a notable improvement from the US$3,43 million loss recorded previously, as management tightened cost controls and drove efficiencies across business units.
