AXIA records 68 percent profit

RETAIL and distribution group, AXIA Corporation Limited posted a 68 percent jump in operating profit to $22,4 million for the six months up to December 2018 from $13,3 million in the comparative prior period.

The group’s revenue grew 74 percent with nearly a $100 million margin to $234,1 from $134,3 million recorded in 2017 as it also recorded a 65 percent growth on profit before tax to $22,8 million.

AXIA strong growth was driven by a mixed volume performance across operations as TV Sales and Home exhibited a robust first half of the financial year with a 35 percent increase in sold units compared to the prior period resulting in a 63 percent turnover growth.

Distribution Group Africa-Zimbabwe (AXIA subsidiary) posted a 91 percent growth in turnover and more than 100 percent in operating profit as Transerv recorded a four percent growth in revenue.

AXIA indicated that foreign exchange deficiencies coupled with the prevailing challenges in the economy hindered the smooth flow of business, but the company managed to come up with remarkable results. The period under review was generally faced with difficult trading conditions. The challenges faced in the economic environment were characterised by constraints in the supply of some local products and foreign currency constraints.

“Despite these factors the group’s business units were resilient and this helped the group register a good performance, characterised by constraints in the supply of some local products and foreign currency constraints,” said AXIA.

AXIA continues to grow its network as seen by recent opening of TV Sales and Home outlets in Masvingo and Banket.

The group also acquired a 49 percent shareholding stake worth USD$2,5 million in Maton (Pvt) limited Restapedic a bedding manufacturing business.