Specialty retail and distribution group, Axia Corporation says it will continue to invest in volume growth during financial year 2024 (FY24) in a move expected to enhance product supply and earnings growth.
The initiatives are expected to benefit TV Sales and Home, and Transerv which have been on a branch network expansion drive in the past financial year. The group has also emphasised the need to bring in imports to boost product portfolio diversity.
According to the group, the year-to-date volume performance at TV Sales and Home increased by 4 percent compared to the same prior year period.
Revenue for the year to June 30, 2023 jumped 5 percent primarily as a result of the generic growth of stores in the store network. This initiative is expected to continue in the current financial year, boosting its.
“As previously mentioned at half year, TV Sales and Home continues to invest in volume growth initiatives with the introduction of a new product range from the group’s local manufacturing units as well as imported products,” said group chairman Mr Luke Ngwerume in a statement accompanying Axia’s financial results for the 12 months to June 30, 2023.
During FY23, TV Sales and Home opened three new stores in Harare although two other outlets were also closed in the capital as the business was given notice to vacate by the landlord.
“Plans are underway to continue expanding the retail store network. At least four new stores will be opened in the first half of the new financial year with a new store concept, Bedtime Store, opening two stores.
“The first outdoor world garden furniture store was opened in September 2023. Volumes are expected to improve in the new financial year, ceteris paribus, following the addition of new home appliances and homeware distribution business lines,” said Mr Ngwerume.
The business moved its new bedding factory in Sunway City, Harare, in April 2023 and production volumes have improved since then, according to the group.
Additionally, a new conveyor system has been delivered and is currently being installed thus improving automation in the manufacturing process, which should result in improving production volumes. Some orders were sold to new markets in the region and response from those markets has been encouraging.
The group will maintain the same focus at Transerv, which registered a 5 percent increase in revenue compared to the prior year attributed to the rapid expansion in the company’s retail footprint.
During the past financial year, the company opened seven new retail stores in Harare and one in Kadoma. Mr Ngwerume said: “The company continues with its drive to increase its retail footprint in a bid to bring convenience and improve the overall customer shopping experience.
“Management is confident that in the 2024 financial year, revenue will continue to grow as the company reaps the full benefits of footprint expansion.”
Meanwhile, Axia’s revenue for financial year 23 declined marginally to US$203,8 million compared to US$204 million recorded in the previous comparable year.
Axia posted an operating profit of US$20,84 million, representing a 16 percent decline to the comparative period. The financial loss line is predominantly composed of foreign currency exchange losses resulting from the depreciation of monetary assets denominated in local currency as the local currency significantly devalued in the last quarter of the financial year. – Herald
