- TV Sales & Home Volumes for the quarter increased by 12% against the comparative period
- Transerv’s revenues were 11% above the prior period
- DGA Zimbabwe's year-to-date volumes were 26% below the comparative period
Harare - Axia Corporation released their trading update for the third quarter ended March 2023, demonstrating satisfactory performance despite facing significant exchange rate volatility and economic distortions in Zimbabwe. While the quarter started steadily, the widening gap between official and parallel exchange rates and reduced access to foreign currency impacted formal trading. However, strategic pricing, cost management and balance sheet optimization enabled Axia to deliver positive results.
In Zimbabwe, 12% and 19% growth in TV Sales & Home volumes and debtor’s book respectively evidence healthy consumer demand and the success of Axia’s product diversification. Axia continued leveraging reduced interest rates to fund working capital needs. However, limited foreign currency allocation and exchange rate risks persist as challenges. Restapedic faced temporary disruption relocating to a new factory, but recovery is expected next quarter as production resumes and Axia enters new export markets. Legend Lounge also contended with production interruptions to redesign products, but efficiencies and reworked pricing should boost competitiveness. Touch Distributors, Axia’s new business, continues to gain market traction and will open a new retail store. Transerv grew revenues 11% and opened 4 new shops, with 2 more coming, extending its automotive spares access.
Regionally, Zambia’s currency devalued sharply due to little foreign currency, but Axia’s revenue and volumes there still rose 16% and 10% respectively. In Malawi, however, volumes fell 21% as foreign currency shortages limited imports and sales. Axia is managing foreign suppliers and seeking foreign currency solutions.
Axia’s guidance indicates persisting economic distortions in Zimbabwe, but hopes progressive policies stabilize markets and build confidence. Axia will keep exploring growth opportunities.
Overall, Axia demonstrated ability to thrive through a turbulent quarter, delivering solid results despite facing squeezed consumer demand, costs pressures, exchange rate risks and supply chain disruptions. Prudent management, strategic expansion, product and price optimization, and balance sheet strengthening have enabled Axia’s resilience. With a focus on new opportunities and stabilizing policies ahead, Axia seems well-positioned to continue creating value. Stakeholders should find reassurance in Axia’s adaptability this quarter.
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