Online Reporter
Nelson Gahadza
ZIMPLOW Holdings’ flagship agricultural division, Farmec, outperformed expectations in the year-to-date (YTD) period, after revenue surpassed budget by 5 percent and came in 16 percent ahead of the same period last year.
The El Niño-induced drought in Zimbabwe last year significantly impacted Zimplow’s performance, particularly its agriculture cluster business units.
The drought led to reduced agricultural output and revenue, affecting Zimplow’s revenue drivers and causing a decrease in whole goods volumes.
But following the good rains in the 2024/2025 cropping season, the diversified group expects a stellar performance going forward.
Group chief executive Mr Willem Swan, giving a trading update for the period to May 31, 2025, during the company’s annual general meeting on Monday, said the strong performance came on the back of improved liquidity in the agricultural sector and a strategic push to stock and promote the popular MF200 series tractors.
“Tractor sales reached 61 units, exceeding the budget and more than doubling last year’s figure of 30 units, and implement sales were similarly impressive, totalling 155 units, which surpassed both the prior year’s and budget figures.
“This uptick is largely due to the easing of liquidity constraints following the delivery of tobacco to auction floors,” he said.
Zimplow Holdings, listed on the Victoria Falls Stock Exchange (VFEX), operates in the agricultural, mining, infrastructure equipment, services and logistics and automotive sectors through several subsidiaries.
Mr Swan said that beyond whole goods, Farmec’s after-sales division saw a 59 percent growth in revenue, spurred by the procurement of more cost-effective spare parts and a robust product support campaign.
“This development has not only deepened customer loyalty but has also significantly contributed to the business unit’s profitability,” he said.
However, he noted that despite the positive trajectory, Farmec faced challenges, particularly with increasing inventory days for parts and implements due to fresh shipments.
He added that while debtor days had improved compared to the same period last year, the company acknowledged that aggressive debt recovery remained critical to maintaining healthy cash flow.
“With the second quarter (Q2) showing continued strong momentum and an influx of confirmed orders from tobacco proceeds, Farmec is confidently projecting an even stronger Q3 performance, reinforcing its leadership in mechanised farming solutions across Zimbabwe,” said Mr Swan.
In the period under review, Zimplow’s revenue grew by 10 percent to US$12,07 million compared to US$10,99 million in the same period in 2024.
