HARARE, August 26 (The Source) – Agro industrial group Zimplow narrowed its operating loss by 18 percent to $1, 3 million in the six months to June despite subdued volumes across the all business units.
The company said it would continue to manage costs after staff rationalization had driven net operating costs down by 37 percent.
“We continue to counter the depressed trading environment with a focus on internal re-organization coupled with cost control, cash management and the reduction of borrowings,” said company secretary, Maxwell Chinorwadza, in a statement accompanying company results on Friday.
The group’s revenue was down 30 percent to $8, 2 million as a result of declining volumes while exports accounted for $142,000 compared to $526,000 previously.
Finance costs were also down by 40 percent to $275,000 as the group reduced long-term borrowings to $43,000 from $468,000.
Zimplow incurred an after tax loss of $2 million in the half year period compared to $1,8 million.
Mealie Brand, the group’s flagship operation which manufactures ploughs and plough spares, recorded a 37 percent decline in revenue as export volumes dropped. Mealie Brand traditionally has off take markets in Angola and Zambia.
Volumes for earth moving equipment at Barzem were down 50 percent while sales of generators were 28 percent down.
The group raised $1,5 million through the disposal of non-core properties during the period.