Axia Corporation’s strategic expansion and investment set to drive new opportunities in the upcoming financial year
VICTORIA FALLS Stock Exchange (VFEX)-listed firm, Axia Corporation Limited, has announced that the expansion of its store network at Transerv and TV Sales & Home, the completion of its bedding manufacturing plant, and investment in working capital to aggressively expand the debtor’s book are set to create new opportunities in the upcoming financial year.
The main operating business units in the Axia Corporation Limited Group are TV Sales & Home (TVSH), Distribution Group Africa (DGA), and Transerv.
TVSH is Zimbabwe’s leading furniture and electronic appliance retailer, with sites located nationwide. It includes manufacturing business units such as Restapedic, a bed manufacturing business, and Legend Lounge, a lounge suite manufacturing business.
DGA’s core areas of expertise include inbound clearing and bonded warehousing, ambient and chilled warehousing, logistics, marketing, sales, and merchandising services.
Transerv, on the other hand, retails automotive spares and accessories and solar products through its nationwide retail stores network and service centres.
The listed entity aims to increase its product offerings and consolidate its market share by continuing to seek new markets for its products.
“Our efforts to boost demand in the formal market through close partnership with retailers have started to pay dividends,” said Axia chair Mr Luke Ngwerume in the group’s financials.
He stated that the group will direct the free cash generated towards funding identified opportunities, adding that the group’s proactive measures to address economic shifts and consumer preferences will play a pivotal role in sustaining and potentially increasing market share.
Overall, the combination of strategic initiatives and improved currency stability will steer the Group to an improved performance in the coming year, he said.
In the period under review, Transerv recorded a six percent increase in volumes to 2 988 851 units compared to the prior year, resulting in 11 percent revenue growth.
He attributed the growth to the opening of eight new retail shops, three of which were launched in the last quarter, the erection of three new container shops, one in-store agent, and two service centres.
Additionally, he noted that the growth in credit sales, particularly driven by the expansion of solar product sales, played a crucial role in revenue growth.
“There are plans to open new shops in the first half of the new financial year as well as broadening the product range.”
The group reported revenue of US$193 849 million during the year, representing a five percent decline compared to the prior year.
An operating profit of US$19,645 million, representing a six percent decline on the comparative year, was posted.
The total asset position increased by US$9,380 million, while borrowings increased by 59 percent to fund working capital and capital expenditure.
A net cash of US$7,925 million was generated from operating activities, representing a 10 percent increase on the comparative year.-chroncile
