HARARE – Axia Corporation’s primary business unit, TV Sales & Home, is optimistic about maintaining robust performance for the fiscal year ending June 30, 2024, and beyond. This outlook is bolstered by an aggressive store network expansion and the pursuit of new export markets.
In addition to its strong presence in the local market, Axia is actively exploring new export opportunities to leverage increased production capacity. The group’s ongoing store expansion initiative has already yielded positive results, with third-quarter volumes increasing by 8% compared to the same period last year.
This expansion strategy will continue for the remainder of the financial year, with a particular focus on its specialty bedding segment. “The rollout of the bedtime specialty stores will continue into the fourth quarter, with another two stores planned before the financial year-end,” the group announced.
For the third quarter ending March 31, 2024, TV Sales & Home reported a 1% increase in performance over the previous year, while volumes surged by 8%. Year-to-date, the company’s performance is 4% above the prior year, driven by an 11% growth in volumes.
“This growth is primarily due to our expanding store network and our reputation as a trusted provider of quality household furniture and appliances,” stated the Axia Group. “Our credit book remains solid with a very low default rate.”
The specialty bedding segment, Restapedic, has shown promising capacity improvements following the commissioning of its Sunway 10,000 bedding facility. The group’s monthly production has significantly exceeded prior year figures, enhancing the domestic market while compensating for a sluggish export market.
Despite challenges in the export market, Axia is making efforts to identify new markets to absorb the additional production capacity not consumed locally. Year-to-date revenue for this segment has increased by 35%, with a 54% rise in volumes. Third-quarter revenue was up 26% compared to the same period last year, with volumes increasing by 52%.
“Restapedic remains committed to implementing strategies to stay ahead of market-driven challenges affecting demand,” the group noted.
Meanwhile, Legend Lounge has seen a 14% increase in year-to-date revenues, driven by a 26% growth in volumes. Third-quarter revenues were up 11% over the previous year, with volumes increasing by 9%.
The company anticipates that changes in raw material sourcing will enhance product quality and reduce production costs. Additionally, Legend Lounge plans to introduce new varieties of modern suites to expand its product offering.
Overall, Axia Corporation remains confident in its growth trajectory, supported by strategic initiatives and market adaptations aimed at strengthening its market position and meeting customer demand effectively.
