Zimplow in talks to expand products

13

ZMPLOW Holdings (Zimplow) last week said it is in talks with certain entities to expand its product mix.

This follows the farming implements manufacturer’s recent announcement that it is determined to weather the Covid-19 crisis and see its business continue to expand after the pandemic.
“Shareholders are advised that Zimplow Holdings is in discussions regarding a transaction with unlisted entities in complementary sectors to Zimplow’s current product mix,” the company said in a statement last week, adding that further details on the transaction will be provided in due course.
The company has said while it is yet to determine the full extent of the impact of Covid-19 on the economy and business, it remains positive in its approach towards achieving its strategy, and see its “footprint of global brands expand in our markets”.
“… as a business we will continue to support industry, the essential services, agriculture and mining, and people as best as we can,” Zimplow said in a trading update for the quarter ended March 31, 2020.
The latest development also comes after Vimbayi Nyakudya, Zimplow’s chief executive, has said he plans to make the company a blue-chip counter with an increased market share in the coming few years.
“We want to achieve blue chip status within the next five years,” he said.
“Basically, this means Zimplow has to be a large company and our scope has to cover more than what we currently serve with respect to markets, products and business units.”
Zimplow has been on a growth path since 2017 and has since upgraded its workshops and fleet to contribute towards the resuscitation of Zimbabwe’s agriculture sector.
The company manufactures and markets a diverse range of products for the construction, infrastructure and agricultural sectors in Zimbabwe.
It also manufactures and distributes metal fasteners for the mining, construction and agricultural sector, and has interests in property management. It is the marketing and distribution agent in Zimbabwe for brands such as Massey Ferguson, Caterpillar and Perkins.
Meanwhile, the company saw improved volume performance across all its units except for Mealie brand during the quarter to March 31, 2020, despite the challenges caused by the novel coronavirus.
Revenue was 896 percent ahead of the same period last year, while profit after tax was up by 1 111 percent.
Barzem, which distributes “world leading” earthmoving equipment brands, had a bright start in the beginning of the year, selling eight units compared to none during the same period last year. The division’s parts sales also improved by 24 percent from last year.
Powermec, the local distributor of a major generators brand, saw significant improvement with generator units sold 118 percent ahead of prior year.
Tractor sales at Farmec remained at the same levels as the prior year whilst implements volume grew by 100 percent to 40 units sold compared to the same period last year.
On the other hand, Mealie brand, the agricultural equipment division, has seen a downturn as dryland farmers were affected by drought in the earlier part of the season, and more notably by the Covid-19 pandemic that delayed the opening of the tobacco selling season.