Zimpapers Logo

Michael Tome-Business Reporter

AXIA Corporation Limited says improved consumer disposable incomes resulted in massive growth in volumes during the year ended June 30, 2021.

Mr Luke Ngwerume, the company’s chairman, in a statement accompanying the company’s financials said the improved disposable incomes were supported by better yields in the agriculture sector and improved mining activity.

“Zimbabwe witnessed an increase in consumer disposable income benefiting from increased economic activity and better agriculture output,” he said.

He said the group’s operations, which include TV Sales and Home (TVSH), Distribution Group Africa (DGA) and Transerv,  realised impressive volumes despite the Covid-19 induced restrictions observed during the second half of the financial year.

TV and radio sales and home posted a modest set of results, as volumes jumped 35 percent on the prior year leading to a 33 percent growth in revenue while Transerv volumes grew by 67 percent compared to last year contributing 30 percent to revenue growth.

Axia’s revenue in the period under review grew by 36 percent to close the year at $21, 2 billion from $15 6 billion realised in the same period last year.

The group posted an operating profit of $2, 1 billion translating to a 20 percent improvement on the comparative period from $1, 7 billion.

At $668 million the group’s profit after tax was 49 percent lower than the $1, 3 billion realised in the prior comparable period in 2020.

“In particular, DGA reported a 53 percent rise in operating profit ahead of last year’s, correspondingly gross margin grew by 16 percent despite a decline in revenue,” Mr Ngwerume said.

He said during the year under review,  fairly steady currency and a settling inflation rate were positive influences in buoying Axia’s business operations.   

The group noted that it was optimistic that Zimbabwe will manage and contain Covid-19 which will have a significant impact on the short to medium-term economic recovery prospects.

“Going forward, the company intends to invest in production facilities to boost lounge suite and bed manufacturing at TV Sales and Home,” said Mr Ngwerume.