Zimplow Holdings Limited (Zimplow) narrowed its loss before tax by 85 percent to US$492,180 in the year ended 31 December 2025, down from a US$3,437 million loss recorded prior year.
The group recorded a 13 percent revenue growth, achieving total revenue of $33,544 million compared to $29,778 million recorded prior year.
Benjamin Kumalo, the group’s chairman, said the performance was driven by “agriculture-related business units demonstrated a marked improvement as Farmec and Mealiebrand swung to profitability at US$418,923 and $275,165 respectively against a loss in the same period last year”.
“Cumulative losses attributed to TPS, Trentyre and Powermec stood at US$866,962 and this weighed down the group owing to supply chain issues and the loss of the Develon franchise,” he said.
Kumalo added: “In compliance with the applicable are International Financial Reporting Standards, there are two matters that contributed to the current year loss being impairment adjustments to goodwill and treasury bills which amounted to US$219,439.”
Willem Swan, Zimplow chief executive, weighed in saying the “improved performance is particularly notable given the pressures of liquidity constraints in the broader economy, supply chain delays, and the inflationary cost environment”.
“Our balance sheet also strengthened meaningfully, with gearing reduced to two percent, well below our five percent target…,” Swan said.
The group – focused on the manufacturing and distribution of machinery for the agricultural, mining, infrastructure sectors – did not declare a dividend for the period under review as it concentrates on returning to profitability.
In the outlook, Kumalo said “the group looks forward to an improved financial performance in 2026 anchored by the agriculture related business units on the back of an encouraging 2025/2026 weather pattern”, adding that the group identified a renowned global brand for a distributorship to cover the mining and infrastructure equipment supply in replacement of the lost Develon franchise.
“…this strategic initiative will see the group reclaiming its foothold in the mining and infrastructure equipment supply segment.”
Kumalo said the group is “closely monitoring the effects of the Middle East conflict considering fuel price escalations and supply chain disruptions resulting in increased lead times and downstream inflationary pressures”. – TML