ZIMPLOW Holdings has reaffirmed its commitment to long-term growth and sustainability despite facing economic headwinds in 2024.
The company navigated challenges such as currency volatility and a drought-induced downturn with decisive measures, including a cost-containment strategy, asset optimisation and product diversification.
A key highlight was the company’s focus on expanding its footprint in the mining and infrastructural sectors, with Tractive Power Solutions (TPS) recording an impressive revenue growth of 478%.
Additionally, Zimplow’s restructuring efforts, including decentralisation and operational efficiency enhancements, have positioned the group for strong recovery in the coming financial year.
The company also undertook a balance sheet clean-up to ensure financial transparency and stability.
Provisions and write-downs, amounting to US$1,4 million, were executed as part of the transition to a USD reporting currency, reflecting Zimplow’s commitment to financial integrity. Furthermore, strategic non-core asset disposals generated US$2,75 million, which was reinvested in working capital to strengthen business operations.
With the anticipated return of normal to above-normal rainfall pattern in the 2024/25 season and increasing demand for alternative power solutions, Zimplow remains optimistic about reverting to profitability.
In the outlook, Zimplow chief executive officer Willem Swan said the effects of the El Nino-induced drought would be felt this year in the agricultural sector. He added that the impact of the informal market would continue to be felt by TrenTyre and CT Bolt. Swan said price competitiveness and offering best-in-class service and low overheads were expected to translate to profitability.
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“Rationalisation at Mealie Brand and TrenTrye is expected to bring these business units back to profitability, thereby adding to group profitability,” he said.
“Sales pipelines across Scanlink, Farmec, Powermec and TPS are encouraging.”
