Pride Mzarabani
HARARE (FinX) – Zimplow Holdings Limited has returned to profitability, posting a 13% year-on-year revenue increase to US$14.2 million for the five months ended May 31, 2026. This performance reverses two consecutive years of losses, driven by a recovery in the agricultural sector, sustained mining demand, and internal restructuring.
Gross margins expanded to 27% from 24% in the prior comparable period. The group recorded a profit before tax of US$426,000, marking a US$1.1 million swing from a loss before tax of US$708,000 last year. Acting Chief Executive Officer Charles Chaibva attributed the turnaround to the 2025–2026 summer farming season, strong commodity prices, and cost-containment measures introduced in 2025.
Farmec anchored the group’s performance, generating 68% of overall profitability. The unit saw a 29% revenue surge, culminating in a profit before tax of US$291,000. Growth was supported by a 27% increase in whole goods sales, a 47% rise in workshop service hours, and a 60% jump in parts revenue, heading into the second half with a secured supply chain.
Mealie Brand also capitalized on the improved rainfall, growing revenue by 25%. Its export strategy cushioned domestic softer patches, with export implement revenues increasing 147% and export parts volumes up 128%.
Meanwhile, the newly established mining implements division positioned itself to break even following a previous loss of US$299,000. Despite a temporary slowdown in domestic tractor and implement demand during April and May due to lower tobacco auction prices depressing farmer incomes, management expects regional export momentum to carry the unit forward.
In the rubber and automotive segments, TrenTyre achieved a major turnaround, reversing a US$201,000 loss to secure a profit before tax of US$26,000 on a 47% revenue expansion. Gross margins reached 32%, lifted by higher-margin off-the-road (OTR) mining tyres. New tyre revenues surged 129% on the back of key mining supply agreements, which offset a dip in retread volumes caused by a factory relocation and rubber supply constraints that have since been resolved.
Performance was mixed across the remaining subsidiaries. PowerMec’s revenue contracted 6% to US$1.4 million, yielding an US$11,000 loss before tax as a stable national grid caused a 42% decline in generator sales, though its solar division expanded by over 200%. Scanlink reported an 11% revenue drop to US$3 million due to lower parts and logistics volumes, but management expects a recovery via a new original equipment manufacturer (OEM) customer financing structure. CT Bolts maintained profitability with a modest 2% revenue lift to US$17,500 and a steady 51% gross margin, defending its market position against cheap imports by pivoting toward a wholesale trading model.
Looking forward, Zimplow is cautiously optimistic for the second half of 2026, relying on late-season cereal harvests, steady power supply, firm gold prices, and group-wide customer financing structures to drive sales. Management maintains that structural adjustments made over the past year have de-risked the business model against potential climate shocks ahead of the 2026–2027 agricultural season.
At the annual general meeting, shareholders approved US$107,000 for non-executive directors’ fees and US$98,111 for auditors’ remuneration.
