Axia sees sustained  strong performance Axia has been rolling out a store network expansion programme, which has resulted in third-quarter volume jumping by 8 percent compared to the same period in the prior year (File Picture)

Enacy Mapakame

Axia Corporation’s main business unit, TV Sales & Home expects to maintain a solid performance for the year to June 30, 2024 and beyond driven by store network expansion and new export markets.

Apart from the local market, the group is scouting for new export markets to cater for the increased capacity.

The group has been rolling out a store network expansion programme, which has resulted in third-quarter volume jumping by 8 percent compared to the same period in the prior year.

The initiative is expected to continue through the remainder of the financial year with a special focus on bedtime specialty, as it bolsters both financial and volume performance for the group.

“The rolling out of the bedtime specialty stores will continue into quarter four with another two stores planned before the financial year-end,” said the group.

During the third quarter to March 31, 2024 TV Sales and Home’s third quarter performance was 1 performance up to the prior year while volumes were 8 percent up for the same period.

According to the group, the year-to-date position was 4 percent above the prior year on the back of an 11 percent growth in volumes over the same period.

“This is attributed mainly to our steadily growing store network as well as maintaining our brand as the trusted quality provider of household furniture and appliances.

“Our credit book remains solid and has been steadily growing and the default rate has been encouragingly very low,” said Axia Group.

As for its specialty bedding segment, Restapedic’s capacity following the commissioning of its Sunway 10 000 bedding facility has been “very encouraging” with monthly actual production significantly above the prior year, according to the group.

This is expected to enhance the domestic market while offsetting the depressed export market performance.

According to the group, export sales have remained subdued, and efforts have been made to find new markets to cater for the additional production capacity that is not able to be taken up by local demand.

Revenue on a year-to-date basis for the segment grew 35 percent to the prior year while volumes went up 54 percent. Third-quarter performance was 26 above the prior comparable period last year while volumes are 52 percent up for the same period.

“Despite market-driven challenges affecting demand, Restapedic remains focused on implementing strategies to be ahead of the curve,” said the group.

At Legend Lounge, revenues were 14 percent ahead of the prior year on a year-to-date position, on the back of a 26 percent growth in volumes. Quarter performance was 11 percent up on prior year and volumes for the quarter were also 9 percent on the comparative period last year.

The impact of changes on the sourcing of raw materials will improve quality as well as lower the cost of production. The business is also poised to introduce new varieties of modern suites to widen the product offering.

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