Zimbabwe News and Internet Radio

Zimplow profit jumps 76 percent

By Natasha Chamba

Zimbabwe Stock Exchange (ZSE)-listed agro-industrial group, Zimplow’s revenue grew by 25 percent from US$39,2 million in 2017 to US$48,7 million in the year ended 31 December 2018 with a profit of over US$6 million, which was a 76 percent jump from the prior year.

Activity at Zimplow
Activity at Zimplow

The group improved its asset base at US$47,8 million from US$39,1 million in the comparable period, showing strong value for the business, according to the company’s financial statements for the period issued yesterday.

In a statement accompanying the financial report, group chairman Mr Thomasmore Chataika said the year was a successful one for Zimplow because of growth in the national Gross Domestic Profit (GDP) and resurgent agricultural sector.

“The 2018 financial year was a successful one for the Zimplow Group drawing from growth in the national GDP and a resurgent agricultural sector. Group revenue went up by 25 percent from $39, 1 million to $48, 7 million. Success with cost containment measures saw the net profit percentage up from nine percent to 12 percent,” he said.

“Net profits available to the shareholders were up by 76 percent from $3,4 million to $6 million.”

Mr Chataika said all the group’s subsidiary divisions performed well. Powermec, which deals with agricultural equipment, recorded 116 percent jump in revenue from $1, 9 million to $4, 1 million.

Similarly, Farmec, which deals in distribution of agricultural heavy machinery, increased its revenue by 59 percent from $11, 1 million to $17, 7 million. This was spurred by tractor sales, which were up by 75 percent from 95 units in 2017 to 166 units in 2018.

Mealie Brand’s revenue went up by nine percent from $11,5 million to $12,5 million while Barzem also recorded a growth of seven percent to $12,7 million. Turnover at CT Bolts was also up by 20 percent from $1,5 million to $1,8 million.

“The board declared a dividend of $500 000 payable to shareholders of the company registered at the close of business on the 12th of April 2019,” said Mr Chataika.

The group said on 31 December 2018 it disposed of its 49 percent interest in Afritrac Private Limited for US$196 059.

The carrying value of net identifiable assets disposed of including currency translation difference amounted to $448 567 as at 31 December 2018, resulting in a loss on disposal of $342 853.

On the outlook Mr Chitaika said the group expected its mining unit to grow and increase revenue for the group in the next financial year.

“The most important task that Zimplow’s board and management have is management of the balance sheet. Over the last two years we have achieved to malleable balance sheet structure where we are able to generate cash or assume a defensive posture in response to market conditions. We will take advantage of opportunities as they come in the 2019 financial year,” he said. The Chronicle