- Topline Growth: AXIA Corporation reported a topline growth of US$99.6 million in 1HY 2025, with notable contributions from the TV Sales
- Strategic Retail Expansion: The company opened two new stores, bringing its total to 56, and plans to add two more in Q3
- Dividend Declaration: Declared a dividend, demonstrating confidence in its financial health and commitment to shareholder value
Harare- AXIA Corporation Limited, a diversified company listed on the US dollar-denominated bourse, Victoria Falls Stock Exchange (VFEX) has reported a topline growth of US$99.6 million in the first half of 2025 (1HY 2025), driven by robust performances across its key divisions, particularly TV Sales and Home Group and Transerv.
TV Sales and Home Group emerged as a standout performer, achieving a remarkable 24% revenue increase to US$39.3 million, with TV Sales alone recording a solid 6% growth in both revenues and volumes.
The division expanded its footprint by opening two new stores during the period, bringing its total retail units to 56 and adding four bedtime stores.
"We plan to open two additional stores in the third quarter of the financial year," Ray Rambanapasi, the Group's CEO said at an analyst briefing held in Harare yesterday.
The company's strategic move into solar product sales, launched in Q4 2024, has already yielded promising results with robust demand.
Meanwhile, the Restapedic Unit under TV Sales and Home saw a 14% year-on-year revenue increase, fueled by a 21% surge in volumes.
This growth was supported by competitive pricing strategies designed to counter the informal market, a challenge also faced by regional peers such as Zimbabwe-based Edgars, which has struggled to maintain market share against informal traders.
Restapedic's factory now operates at 99% capacity, producing approximately 4,000 beds monthly, with plans to open additional shops, including one in Glen View, to capitalise on this momentum.
Transerv, another key division, posted a 27% revenue increase to US$19.9 million.
However, overall performance was was tempered by weaker performance in Distribution Group Africa (DGA).
DGA faced headwinds across its operations, with Zimbabwe seeing a 25% revenue drop to US$20 million, Zambia declining 11% to US$9 million, and Malawi experienced 13% dip to US$10.9 million.
In contrast, regional logistics firms like Imperial Logistics in Southern Africa have reported more stable performances, highlighting DGA's exposure to local economic pressures. To address this, AXIA plans to restructure DGA in line with its revenue streams, a proactive step to restore profitability.
AXIA's performance stands out when benchmarked against regional firms. For instance, while Malawi-based retailer Shoprite has seen single-digit growth in its latest reporting period, AXIA's diversified portfolio has delivered double-digit gains in key segments.
The company also declared a dividend signaling confidence in its financial health and a commitment to shareholder value a move not matched by many regional peers facing tighter margins.
Therefore, AXIA Corporation Limited's 1HY 2025 results reflect a blend of strategic expansion, competitive pricing, and resilience in challenging markets.
While DGA's underperformance highlights areas for improvement, AXIA's overall growth trajectory positions it favourably against regional competitors, reinforcing its status as a dynamic player in the diversified corporate landscape.
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