Zimplow financial performance plunge | Business Times

 

CLOUDINE MATOLA AND TENDAIISHE NYAMUKUNDA

 

Zimplow Holdings Limited, an agro-industrial concern listed on the Victoria Falls Stock Exchange, suffered a 28% reduction in revenue to US$32.07m in the 12 months to December 31, 2024 from US$44.24m reported in in the prior year, largely due to economic headwinds and the devastating EL Nino that hampered the business,

Business Times can report.

 

According to financial results published this week, Zimplow also suffered a 39% slump in profit for the period under review to US$559,87m from US$918.84m reported in 2022.

 

The depressed financial performance coincided with the departure of the organisation’s CEO, Vimbayi Nyakudya, who had served the company for 8 years.

Willem Swam has since taken over as the acting CEO.

 

According to Godfrey Manhambara, chairman of Zimplow, the company had numerous difficulties throughout the period under review, which had a detrimental effect on operations.

 

 

“The Group recorded a 28% reduction in revenue from prior year. Operating profit decreased by 74%. This decline is mainly attributable to the challenging operating environment. In the period under review, the group continued to lay emphasis on cost containment measures as evidenced by a 23% positive variance in operating expenses when compared to the prior year,” Manhambara said.

 

Additionally, he said the organisation faced severe liquidity problems during the period under review  as well as shortages of foreign currency and depreciation of  the local currency.

 

 

“The trading environment was characterised by acute liquidity challenges, unavailability of foreign currency, power supply challenges and the continued depreciation of the country’s local currency. The period under review saw the implementation of a plethora of measures by the Government as well as the central bank with a view to address the above-mentioned challenges,” he said.

 

 

Acting CEO, (Willem) Swan weighed in saying that there was less demand in the agriculture cluster and the drought caused reduced consumer spending throughout the group.

 

 

“The late onset of summer rainfall in the 2023/4 cropping season dampened demand in the agricultural cluster and the impact of the economic headwinds resulted in a contraction in customer spending across the group,” Swan.

 

 

Meanwhile, Zimplow has concluded the acquisition of a  49% stake in Barzem, putting the company’s mining and infrastructure cluster in a good position for significant growth and consolidation of  its  mining industry presence.

 

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