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Zimplow narrows FY loss

zimplow
HARARE
– Zimplow posted a $2, 5 million loss for the year ended December 31, 2016, a 47 percent improvement from the $4, 8 million loss recorded in the prior comparable period.

The reduced loss came despite a revenue decline during the period as management responded by reducing operational costs.

The agro-industrial concern’s revenues were down 22 percent to $24, 2 million as agricultural production and spend slowed, mainly during the first half of the year.

The group implemented a number of cost-cutting measures during the period, including a restructuring exercise, which knocked down operating costs by 42 percent to $10 million from $14, 9 million previously.

Administrative expenses were down 33 percent to $6, 9 million. Zimplow also managed to reduce borrowings by 49 percent to $2, 1 million. The group’s total assets declined from $39 million in the previous year to $34, 5 million.

In terms of the performance of its various divisions, Mealie Brand unit recorded a 45 percent increase in plough sales volumes from the prior comparable period on the back of a rise in local sales, which went up 10 percent.

The division’s exports rose 50 percent. Barzem’s revenue declined 25 percent on prior year due to a 48 percent slump in new unit sales. The company said service hours were also down on the back of the Mozambican contract coming to an end on reduced coal mining business in that country.

Farmec recorded a 55 percent decline in tractor sales while Powermec posted a decline in generator sales which were down 51 percent compared to prior year.

Going forward, the group is anticipating positive earnings in FY2017 on the back of the anticipated improved agriculture production due to good rains experienced across Zimbabwe.

Source :

bh24

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