Insurance24
Zimplow Holdings Limited has returned to profitability, posting a profit before tax of US$891,063 for the nine months to September 30, 2026, as improved stock availability, stronger sales and cost-containment measures supported performance across most of its business units.
The agricultural equipment and industrial supplies group reported a US$1.54 million turnaround from the loss before tax of US$650,998 recorded in the comparable period last year, according to its third-quarter trading update released on October 15.
Revenue increased 10.6% to US$24.88 million from US$22.49 million in the prior year, while gross margin improved by 1.9 percentage points to 28.2%.
The group attributed the stronger performance to improved stock availability and increased economic activity during the period under review, with the third quarter contributing US$634,775 in profit before tax, more than double the US$256,288 recorded during the first half of the year.
Farmec, Zimplow’s largest contributor to group profit, recorded a 25.7% increase in revenue to US$10.11 million, while profit before tax surged 151.9% to US$565,297.
Tractor sales rose 14% to 122 units, while implement sales increased 23.8% to 369 units. Parts revenue grew 24.6% to US$1.73 million, reflecting stronger demand for equipment support and maintenance.
Scanlink also improved profitability despite a marginal decline in revenue. Revenue fell 1.1% to US$5.31 million, but profit before tax increased 212% to US$402,218.
The business sold 34 trucks, more than three times the previous year’s volume, although bus sales declined 20% to 16 units. Parts revenue rose 30.7% to US$2.47 million, while service revenue increased 15.3% to US$1.04 million, supporting an improvement in gross margin to 27.9%.
Trentyre recorded a 29.8% increase in revenue to US$2.18 million, driven by a 66.7% rise in new tyre sales revenue to US$1.43 million. Demand for off-the-road and agricultural tyres strengthened, particularly from the mining sector, with sales volumes increasing 66.8% to 522 units.
Although retread revenue declined because of supply chain challenges earlier in the year, Trentyre reduced its loss before tax by 95.7% to US$12,027.
Mealie Brand and Powermec also returned to profitability. Mealie Brand posted a profit before tax of US$96,321, reversing a loss of US$43,347, while Powermec recorded a US$30,362 profit against a loss of US$65,334 in the prior year.
Mealie Brand’s export revenue increased 42.8% to US$1.15 million, helping offset a 15.4% decline in local revenue. Powermec benefited from growing demand for solar products and accessories, whose revenue more than doubled to US$604,852.
C.T. Bolts completed the positive performance, recording a profit before tax of US$63,798 compared with US$761 in losses previously, supported by lower operating expenses.
However, the group warned that the anticipated strong El Niño weather pattern could affect its agriculture-related businesses during the 2026/27 cropping season. The board said it was pursuing diversification through increased mining-sector exposure, export growth, investment in stock and tighter cost controls.
Zimplow also disclosed that it was in the final stages of negotiations to acquire a business operating in an industry related to the group, although it did not identify the prospective target.
The group said it would prioritise cash preservation, working capital management and the expansion of non-agricultural businesses as it seeks to sustain the recovery through the remainder of the year.
