Pure Simango, Staff Writer 
ZIMPLOW Holdings (Zimplow) says it remains focused on delivering its strategy and targets, amid indications that prospects for the fourth quarter are bright.
In a trading update last week, the diversified agro-industrial group said it will, however, continue to “trade cautiously given the challenging trading environment”.
“The prospects of a good agricultural season, continued growth in the infrastructure development projects as well as firm global metal prices offer a good platform for a strong fourth quarter performance,” Zimplow said.
The company recorded a 45 percent increase in revenues during the third quarter ended September 30, 2021 and its profitability was up by 61 percent in real terms compared to the same period last year.
On a year-to-date basis, revenue and profitability were ahead of prior year by 62 percent and 61 percent in real terms, respectively.
In terms of operations, Farmec maintained growth momentum, driven by firm demand for tractors, implements and after-sales performance pushing up revenue for the nine months by 82 percent compared to the same period last year.
Tractor and implements sales volumes grew by 86 percent and 56 percent against the prior comparable period.
Zimplow said parts sales and capacity utilisation also improved by 19 percent and 26 percent respectively during the period.
Mealie Brand local and export implements sales volumes for the nine months were 37 percent and 30 percent respectively ahead of prior year.
Zimplow is banking on the projected normal to above normal rainfall for the 2021 to 2022 summer season, and recovery of export markets owing to the easing of the lockdown measures across the region, which it expects to provide a boost for the mealie brand.
Barzem delivered 42 percent growth in volumes of earth moving equipment, with the unit expected to sustain the performance.
Zimplow said the CT Bolts unit continues to record growth, with volumes having increased by 56 percent during the period under review.
The Powermec division has had a particularly challenging year attributable to reduced reliance on standby power, the company said.
“However, the third quarter saw a steady growth in demand as the grid became unreliable. Volumes in gensets and solar equipment were behind last year by 37 percent and the business unit is expected to recover volume performance in the fourth quarter as demand for standby power peaks.”
Scanlink’s profitability grew four-fold driven by a strong performance in after-sales.
Truck and buses volumes were affected by supply chain gaps, resulting in third quarter volumes dropping by 31 percent against prior year.
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