In the first half of the year, all business metrics were affected by the COVID-19 pandemic. The Group managed to pull through this difficult and unprecedented trading period. Revenues showed resilience coming in 12% ahead of last year in inflation-adjusted terms from ZWL$428m to ZWL$479m. Profit after tax was 5% ahead from ZWL$134m to ZWL$140m.
Barzem’s revenues went up 145% to ZWL$221m from ZWL$90m. The unit sold 13 CAT whole goods in the first half compared to 2 in the same period of the prior year. After sales business parts and service hours were also ahead of the previous year by 3% and 19% respectively despite losing hours to the COVID-19 induced lockdowns.
CT Bolts also continued its recovery with a 73% growth in revenue to ZWL$22m. The unit achieved 21% volume growth compared to same period last year. The operating profit for the unit was also up 25% to ZWL$10.6m.
The unit will continue to focus on product spread while realigning its distribution channels.
Powermec revenues were flat at ZWL$52.2m with generator sales at the same level as last year. The after sales business showed improvement with parts sales 10% ahead of prior year in real terms and service hours sold 111% ahead of the prior period. The efficiency of our service delivery is a prime focus for the business together with the roll-out of our sustainable
energy and hybrid energy solutions.
Farmec achieved a resilient performance with the operating profit for H1 growing to ZWL$72m from ZWL$62m prior year. This growth was supported by the implements sales volumes which were 35% ahead of prior year. Tractor volumes were 28% behind prior year at 33 units sold. After sales parts and hours sold dipped 13% and 29% respectively. We are encouraged by the reception of the MF Global Series range of tractors by the
Zimbabwean farmers and the subsequent arrival of lower range horsepower tractors just after H1.
Mealie Brand performance for the first half was sharply down compared to the same period last year. This was mainly due to the lingering effects of last years’ drought and limited access to regional markets. Local and export implements volumes were 62% and 84% down respectively. The first two trading months after half-year end are showing a recovery in business revenues.
Our outlook is cautiously positive supported by good leads in the construction and mining industry. In addition, we are encouraged by the Government’s focus on the performance of the agriculture and mining sectors. In light of this, the Group will continue to look out for opportunities to expand its business reach.
On behalf of the board I would like to take this opportunity to welcome Grant Pio to the board. I would also like to express my gratitude to all the staff members in the Zimplow Group for a resilient showing over what has been a very difficult trading period.
Due to the loss in trading days and the importance of conserving cash the Board has not declared a dividend.