Zimplow recovered from a loss of $2.5 million in the previous year to a net income of $3.4 million for the year ended December, 2017 with all business units achieving profitability.
The results complete a remarkable turnaround for the agriculture implements manufacturer which changed management in January 2016 after successive poor results under former chief executive Zondi Kumwenda.
The company reported a loss after tax of $4.8 million for the year to December 2015.
In 2017, revenue rose 60 percent to $39.1 million from $24.2 million in the prior year after a good agriculture season.
“2017 was an important year for the Zimplow group with all our businesses returning to profitability. This was on the back of a good raining season, supportive government policies, as well as good internal strategy execution,” chairman Thomas Chataika said.
The company made an operating profit of $4.8 million from a loss of $2.6 million previously.
The Mealie Brand unit was the best performer, with revenue doubling to $11.6 million from $5.6 million previously, resulting in an improvement in operating profit to $1.3 million from an operating loss of $533 000 in the previous year.
The Farmec unit reported a 61 percent increase in revenue to $11.1 million attributable to a 40 percent increase in tractor sales.
Powermec revenue increased by 62 percent to $1.2 million while operating profit went up six-fold to $242 000.
CT Bolts and Barzerm registered a revenue growth of 40 percent and 35 percent to $$1.6 million and $11.9 million respectively.
The company proposed to pay a dividend of $300 000. –The Source