eBusiness Weekly
BH24 Reporter
HARARE – Agricultural implements manufacturer Zimplow Ltd has bounced back from a FY2016 loss to record after-tax-profit of $3, 4 million for the year to December 31, 2017.
This was on the back on improved overall performance in all the group’s divisions.
“2017 was an important year for the Zimplow Group with all our businesses returning to profitability. This was on the back of a good rainfall season, supportive Government policies, as well as good internal strategy execution,” said chairman Thomasmore Chataika in a statement accompanying the results.
Group turnover was up by 60 percent to $38, 8 million, which contributed to the upturn in profitability.
In respect of the various divisions’ performances, the flagship Mealie Brand led the rest with a 114 percent rise in turnover from $5, 6 million to $11, 9 million. GP margins went up 18 percent as a result of factory efficiencies, said management. The division’s operating expenses were down 17 percent as the group maintained focus on costs expanding operating margins. Mealie Brand achieved an operating profit of $2, 96 million during the period under review.
Farmec’s revenue rose 61 percent from $6, 9 million in 2016 to $11, 1 million presently. Operating expenses were up 10 percent, a factor management attributed to a result of increased administrative expenses in line with the increase in turnover. The division reported a positive outturn in the operating profit which swung from a loss of $533 000 in FY2016 to a profit of $1, 3 million in FY2017.
Powermec posted improved revenues of $1, 9 million, a 62 percent gain from the prior year. GP margins stood at a “healthy” 33 percent, while operating expenses were up 7 percent in line with increased business. Operating profit went up 519 percent from $39 000 to $242 000. The group said on Powermec’s volumes side, generator sales were up 55 percent to 82 gensets with hours sold also up 36 percent to 1544 hours.
CT Bolts’ revenue was up 40 percent from $1, 1 million in 2016 in 2017. The division’s operating expenses were down 9 percent resulting in an operating profit of $355 000, which swung from a loss of $57 000 in the prior year.
Barzem’s revenue went up 35 percent from $8, 8 million in 2016 to $11, 9 million for the year just ended. Operating expenses were down 23 percent from $3, 5 million in the prior year to $2, 7 million in 2017. Barzem made an operating profit of $412 000 against a loss of $794 000 in the prior year.
The board proposed a dividend of $300 000 for FY2017.
