AXIA is focusing on expansion and new business opportunities to drive growth in its furniture and automotive spare parts divisions.
In the half-year ending December 2024, the company reported a 2% revenue increase to US$99.7 million.
Its subsidiary, TV Sales & Home, which specializes in furniture and electronics, performed well, with sales volumes rising 6% to 82,039 units, leading to a corresponding 6% increase in turnover.
Meanwhile, Transerv, which deals in automotive spare parts, saw revenue grow by 27%, supported by a 4% increase in volumes. This growth was driven by higher sales of solar products and the expansion of its branch network.
However, Distribution Group Africa (DGA) Zimbabwe experienced a 25% revenue decline, as sales volumes dropped 28% due to operational restructuring.
Encouraged by its overall performance, Axia plans to expand across different business segments. The company is exploring e-commerce opportunities and enhancing product accessibility while working on productivity improvements and aligning its offerings with market demand.
Financially, Axia’s gross margin increased by 5%, while operating expenses fell by 1%, thanks to cost management efforts. Operating profit rose 14% to US$14.7 million, but profit after tax declined 12% to US$5.3 million, primarily due to foreign exchange losses from Zimbabwe’s currency devaluation.
The company generated US$7.2 million in cash from operations, a 26% decline from the previous period, largely due to increased prepayments for new stock. However, it still invested US$1.1 million in capital expenditure.
Both earnings per share (EPS) and headline earnings per share (HEPS) dropped by 10% to 0.58 US cents. Despite this, Axia’s balance sheet remains strong, with a US$4.5 million increase in net current assets and a slight reduction in borrowings to US$20.2 million.
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