Huge Turnaround for Zimplow
Listed agriculture implements manufacturer, Zimplow Limited has recorded a boom in its business operation for the first six months ending 30 June 2017 after reporting an after tax profit of US$263 000.
Zimplow which recorded a profit of US$2 million in the same period last year attributed its turnaround to good agricultural season and Statutory Instrument 64 of 2016 which prohibited the importation of animal drawn implements into
Mark Hullet, Zimplow, Group Chief Executive Officer noted that export orders boosted sales volumes for animal drawn implements in the first six months of 2017 after recording a 371 percent increase compared to the same period in 2016.
“The trading volumes for animal drawn implements in the first six months of the year improved by 371% compared to the same period last year, largely driven by export orders.
“The volumes of exported implements grew by 1445% while local implements volumes were up by 103%,”said Hullet.
He added that Zimplow adopted and implemented a lean production system focused on eliminating inefficiencies which saw the business unit achieving factory savings above expectation.
Hullet attributed protectionist policies introduced by the government such as SI 64 of 2016 for boosting their animal drawn implements business.
“The unit also welcomed the protection provided to our animal drawn implement business through Statutory Instrument 64 which has already positively influenced the business unit’s volumes during the current tobacco selling season,” said Hullet.
He added that the first six months of 2017 saw the Farmec unit’s sales improving by 98% compared to the same period last year with sales for tractor drawn implements growing by 85%.
“The first six months saw the Farmec unit’s sales improving by 98% compared to the same period last year, the good 2016/17 rainfall season coupled with the introduction of the economical yet efficient MF300 series, boosted the unit’s Massey Ferguson tractor volumes by 465% compared to the same period last year.
“The sales of the Valtra Tractor brand remained stable with strong interest growing in our Valtra range of combine harvesters,” he said.
The sales of the Perkins powered generator units continue to grow with a 63% increase.
CT Bolts unit performed solidly with turnover 13 % up on the first six months.