Axia Corporation registers volume growth
RETAIL and specialty distribution group Axia Corporation Limited says it will focus on executing expansion opportunities, broadening product range, balancing pricing and achieving growth of margin.
In a statement accompanying financial results for the six months ended December 31, 2023, Axia chair, Mr Luke Ngwerume, said despite the difficult operating environment, the group continued to resiliently serve its markets, registering volume growth in TV Sales & Home, Restapedic Manufacturing, Legend Lounge and Transerv.
He noted that the Victoria Falls Stock Exchange-listed firm continues to implement strategies to increase its volumes in the distribution business in Zimbabwe by serving both the formal and informal market channels.
The main operating business units are TV Sales & Home (TVSH), Distribution Group Africa (DGA) and Transerv.
TVSH is Zimbabwe’s leading furniture and electronic appliance retailer with sites located countrywide.
It has manufacturing business units namely Restapedic, a bed manufacturing business and Legend Lounge, a lounge suite manufacturing business.
DGA’s core areas of expertise lie in inbound clearing and bonded warehousing, ambient and chilled warehousing, logistics, marketing, sales, and merchandising services.
Mr Ngwerume said the half-year revenues of TV Sales & Home are up by six percent compared to the prior period and this is on the back of a 11 percent volumes growth.
Volumes for the second quarter at Restapedic improved by 58 percent, resulting in a quarterly turnover growth of 30 percent.
Year to date volumes and turnover increased by 57 percent and 32 percent respectively.
In the period under review, Transerv’s revenue increased by eight percent on the comparative period, on the back of an eight percent increase in volumes.
Mr Ngwerume noted that the increase in revenue is as a result of the rapid expansion in the company’s retail footprint.
He said eight new stores in Harare were opened during the period under review and business prospects remain positive with the increase in vehicle population and increased demand for automotive spares.
During the period, the business unit introduced solar products and the sales statistics are encouraging.
The business unit is expected to continue to grow solar product offering, into the foreseeable future.
On financial performance, Mr Ngwerume said the group reported revenue of US$97,246 million during the period, representing a four percent decline compared to the prior period last year.
Despite the decrease in revenue, the gross margin increased by five percent from the prior year.
Operating expenditure increased by five percent over the comparative period due to inflationary pressures on both local currency and United States dollar costs. The group posted an operating profit of US$12,922 million, representing a five percent increase on the comparative period.
Profit after tax of US$6,030 million was reported, which was seven percent above the prior year.
The chairman noted that the group’s statement of financial position remained strong, with net current asset position increasing by US$0,991 million while borrowings increased by 47 percent to close off at US$18,934 million.
The group generated cash of US$9,74 million from operations, representing an 87 percent increase on the comparative period.
This translated into enhanced free cash generation, enabling the group to incur capital expenditure for the period totalling US$2,23 million.-chronicle.c.zw
