- TV Sales & Home turnover up 30 percent
- DGA Zimbabwe turnover up 6 percent
- Transerv had operating profit growth of 22 percent
Harare – Axia Corporation Limited said for the six months ended December 30, 2020 the relatively stable environment has given rise to the anticipated correction of gross margins across the Group’s businesses in Zimbabwe.
This resulted in decent volume growth across all segments.
Group chairman Luke Ngwerume said TV Sales & Home recorded a decent set of results for the period with turnover 30 percent above prior year and volumes 40 percent above the comparative period.
He said the volume growth was driven by an increase in the store network, increased promotional activity and the reintroduction of credit sales.
“This is encouraging as the period under review was characterized by relative price stability across the value chain. The black Friday promotion was very successful with very pleasing volumes on the day making up a significant portion of monthly turnover.”
During the period under review, Ngwerume said the debtors’ book grew by 130 percent in value and collections on the book have remained good.
He said TV Sales & Home will continue to focus on products from local suppliers as they have proved critical in the business’ operations.
“The manufacturing units have continued to grow their volumes with Restapedic producing 35 percent more volumes than they achieved in the comparative period whilst Legend Lounge witnessed volumes growth above 100 percent. Plans are underway to increase the capacity of the manufacturing businesses as a way to meet product demand and to gear for export markets.”
At Distribution Group Africa (DGA) Ngwerume said the distribution business in Zimbabwe delivered a fair set of results.
In the period under review, turnover increased by 6 percent while volume grew by 4 percent on the prior comparative period.
“Volumes growth was largely driven by local products which do not require sourcing of foreign currency thus were reasonably priced.
“The business continues to preserve its balance sheet in real terms and will also be focusing on improving volumes. Management expects this business to continue to grow in the foreseeable future and become a dominant player in its sector,” said Ngwerume.
At Transerv Ngwerume pointed out that despite the continued challenging trading environment the business remained profitable.
He said while the effects of the COVID-19 pandemic were felt in the supply chain, the business managed to achieve an operating profit growth of 22 percent on the comparative period.
“The business witnessed a decent increase in volumes over the comparative period. Transerv will continue focusing on fast moving product lines and maintain grip on cost control. The business completed its rebranding program where all former MIDAS franchised retail stores have been rebranded to Transerv.”
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