Listed agro-industrial firm, Zimplow Holdings has recorded a 64% drop due to the effects of the Covid-19 pandemic lockdown regulations imposed by regional governments.
Presenting a trading update recently, the firm’s company secretary, Max Chinorwadza bemoaned the pandemic’s impact of company fortunes.
“The export business experienced a 64% drop compared to prior year as a result of measures taken by regional governments to manage the spread of the novel coronavirus (Covid-19).
“Overall implements volumes have been 54% behind the previous year whilst spares volumes were 47% behind the same period last year,” he said.
Most regional countries have embargoed the movement of non-essential goods from foreign countries as part of strategies to contain the spread of the deadly virus.
Apart from these, regional countries have put in place stringent lockdown measures making it impossible to freely move goods.
“As a business, we will continue to support industry, the essential services, agriculture and mining, and people to the best we can.
“We are dedicated to the safety of our customers and employees and therefore we are following social distancing measures and other measures as required by guidance from health authorities,” Chinorwadza said.
However, during the first quarter, Zimplow’s Powermec unit’s performance continued to improve with generator units sold being 118% ahead of prior year.
Aftersales business saw growth in parts by 86%, service hours sold jumped 192% to 2,105 hours.
Mealie Brand had a strong year with revenues up from $70 million to $112,8 million, with the division benefiting from strong export sales, which were up 62% on the prior year.
The improved responsiveness to power outages by our Powermec division unlocked our elevated status as the Authorised Perkins dealer in Zimbabwe.
Tractor sales at The Farmec division remained at the same levels as the prior year whilst implements volume grew by 100% to 40 units sold compared to the same period last year.
Aftersales performances were 22% down from the previous year with service hours sold down 19% to 2,090 hours.
“The second quarter is going to be materially affected by the Covid pandemic. We have taken steps to reduce costs and preserve capital. Other than at Mealie Brand, demand for our products remains stable,” he added.