Harare, (New Ziana) – Retail and logistics group, Axia Corporation (Axia) recorded a jump of nearly 400 percent in net profit to $63.1 million for the full year ended June compared with the previous year on the back of increased sales.
The firm, which is listed on the Zimbabwe Stock Exchange and has TV Sales & Home (TVSH), Distribution Group Africa (DGA) and Transerv as its main operating units, is itself a subsidiary of conglomerate, Innscor Africa Limited.
Axia chairman, Luke Ngwerume said the company doubled its revenues as a result of improved sales.
“The group reported revenue of ZWL$557.414 million during the year to achieve a 102 percent growth on the comparative year,” he said.
“This was driven by a mixed volume performance across operations.”
The firm declared a final dividend of 1.75 ZWL cents per share, bringing the total dividend paid for the year to 2.35 ZWL cents.
Basic earnings per share jumped to 7.07 from 2.02.
Increased cash generation, which was up to ZWL$48.6 million from ZWL$10.136 million in the comparative year, saw Axia reduce its net borrowings to ZWL$3.906 million.
“The group’s capital expenditure for the year totaled ZWL$4.801 million and this was limited to critical maintenance and expansion projects as these were also affected by inflationary pressures,” Ngwerume said.
In terms of unit performance, TVSH, a retailer of furniture and electronic appliances saw its turnover grow 88 percent.
“Due to operating efficiency, the business recorded better growth on operating profit than that achieved on turnover,” said Ngwerume.
Logistics firm, DGA, which also has operations in Malawi and Zambia, grew its turnover by 114 percent compared to last year.
“Operating profit was 353 percent up from prior year due to margin growth while costs went up by a lesser percentage,” Ngwerume said.
Transerv, a retailer of automotive spares, recorded a revenue growth of 37 percent compared to 2018.
“The business managed to maintain its footprint across the country, and has ensured that its customers have access to products as and when
required,” he said.
Transerv celebrated its 10th anniversary in May this year.