- Axia report subdued sales volumes
- TV sales volume declined by 19%
- Digital Distribution Africa (DGA) volumes declined by 27% in Zimbabwe
ZSE-listed retail and distribution cooperation company, Axia Cooperation Limited, recorded a decline in volumes, pointing fingers at the presiding fiscal and monetary policy environment.
The company recorded a 19% and 27% decline in tv-sales volume and DGA Zimbabwe, respectively, in Q3 compared to the same period last year. The Group was affected by the exorbitant interest rates prompting management to embark on an aggressive repayment program to reduce the financial costs, thus improving profitability and free cash generation in the second half of the quarter.
According to the company, although monetary and fiscal policy helped to stabilise the exchange rate in the sector, it also resulted in reduced demand, especially in the retail market and thus contributed to local shaken volumes.
In the region, the trading environment was positive in Zambia, whilst in Malawi there continued to be significant pressure on access to foreign currency. The better-improved business environment in Zambia also contributed to offsetting lost Zimbabwe volumes.
The Zambian market recorded a 3% increase in DGA volumes in Q3, compared to the same period last year.
Axia portfolio, Transerv’s first quarter volumes were down compared to the comparative period. The company iterated that business was mostly affected by pricing pressures in July 2022.
The business continues to closely manage its costs and review its product and service offerings with a prerogative to keep improving the product range and service quality provided to customers. Three new stores were opened during the quarter and plans are underway to open three new stores during the latter part of Q2 2023.
The outlook is that as monetary policy continues to tighten, fostering stability in the economy, gradually the market will gain confidence, which will increase demand in the retail sector and increase the company’s prospects.
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