Axia records volume growth across local operations
Axia Corporation recorded strong volume growth across local divisions in the third quarter to March 2022, as the group focuses on increasing its footprint in the country.
The diversified Zimbabwe Stock Exchange listed group, however, recorded mixed trading in other regional markets after volumes increased in Malawi and declined in Zambia.
The main operating business units in the Axia Corporation Limited are TV Sales & Home (TVSH), Distribution Group Africa (DGA) and Transerv.
Volumes at TV Sales & Home grew by 24 percent in the quarter under review compared to the same period in prior year. This was attributed to the increase in trading days in the current year compared to the same prior year period, where major restrictions to social and economic activity were in effect, following the outbreak of the Covid-19 pandemic.
Year-to-date volumes went up 15 percent compared to the same period last year. Growth remains a key focus area and the business plans to expand its retail store footprint with three new stores scheduled to open in the fourth quarter, one in Bulawayo and two in Harare.
TV Sales and Home increased its shareholding in Restapedic from 49 percent to 60 percent effective July 1 2021. An amount of US$860 000 was paid for this additional stake.
This increase in shareholding enabled Restapedic to invest in a 10 000 bed production facility which is under construction in Sunway City, Harare at an estimated cost of US$4,5 million.
Completion of building the factory is estimated to be November 2022. Restapedic bedding attained revenue and volume growth of 33 percent and 5 percent, respectively, compared to the same prior period.
Transerv is continuing on its growth trajectory despite major challenges in obtaining foreign currency to “ensure optimum stocking levels at all times”.
Year to date volumes were 13 percent up compared to the same period last year whilst the quarter registered growth of 15 percent compared to the same period last year. Before the financial year-end, it is poised to open more retail shops in Bindura, Karoi and Zvishavane.
Year to date volumes for DGA Zimbabwe were 22 percent below the prior comparative period and 21 percent below the same quarter in the prior year.
In Zambia, the third quarter of 2022 saw volumes down 9 percent compared to the same period last year, owing to the impact of termination of Johnson & Johnson agency. Year to date volumes were 16 percent below the prior comparative period.
As for Malawi, volumes were up 53 percent in the third quarter of 2022 driven by the introduction of new agencies namely Clover and Unilever and good support from Colgate. Year to date volumes were 55 percent above the prior comparative period.-The Herald
