Zimplow Holdings Limited has returned to profitability in the first quarter of 2026, buoyed by improved agricultural activity, stronger aftersales revenues and restructuring measures implemented last year.

In its trading update for the quarter ended March 31, the group reported revenue growth of 15 percent to US$8.44 million, up from US$7.36 million recorded during the same period in 2025. Gross margins strengthened to 26 percent from 23 percent, while the company posted a pre-tax profit of US$114,921 compared to a loss of US$596,424 previously.

Management attributed the turnaround to disciplined cost containment, branch optimisation, staff rationalisation and diversification of revenue streams introduced during the 2025 financial year. Improved trading conditions, supported by a favourable agricultural season and increased mining sector activity, also underpinned performance.

Farmec emerged as the group’s strongest contributor, with revenue rising 35 percent driven by growing demand for tractors, implements and workshop services. Tractor unit sales increased 22 percent, while workshop service hours surged 58 percent, significantly boosting higher-margin aftersales income.

Mealie Brand recorded the fastest growth within the group, with revenue jumping 160 percent compared to the prior year period. The rebound followed recovery in agricultural production after last year’s El Niño-induced drought.

 Implements volumes expanded sharply, while spare parts sales rose 193 percent. The division also entered the mining consumables market, opening what management described as a new strategic revenue stream.

Mining activity continued to support Trentyre’s performance, where revenue increased 30 percent on strong off-the-road tyre demand linked to mining operations and supply contracts. However, retread sales declined 44 percent due to reduced processing volumes and operational inefficiencies. 

Management said a recovery plan focusing on plant turnaround times, customer re-engagement and improved casing collections from haulage operators is now underway.

Powermec recorded weaker results as generator sales fell amid improved national electricity availability and intensified competition from lower-cost imports. Generator revenue declined 52 percent and workshop activity dropped 33 percent. Despite this slowdown, the division’s solar energy business expanded significantly, registering 144 percent growth as demand for renewable energy solutions accelerated.

Scanlink delivered improved aftersales performance, with parts revenue increasing 20 percent and margins strengthening through bulk procurement efficiencies and enhanced supplier funding arrangements. Vehicle sales, however, declined 40 percent due to a high comparative base following strong volumes recorded in the prior year.

CT Bolts posted stable results despite mounting competition from imported fasteners. Although sales volumes softened slightly, revenue grew three percent, supported by increased demand for higher-margin products from mining sector customers.

The group cautioned that inflationary pressures remain a key risk after inflation rose to 4.4 percent during the quarter, largely reflecting higher fuel costs and global supply chain disruptions linked to Middle East tensions. Nevertheless, management expects relative local currency stability and improved liquidity from tobacco and cereal deliveries in the second quarter to support business activity.

The company anticipates sustained recovery driven by continued agricultural expansion, customer-focused financing initiatives and ongoing investment in Zimbabwe’s mining industry, particularly in gold mining infrastructure.