- Axia expects the move to Sunway City to unlock manufacturing efficiencies
- Profit after tax rose 40% to US$8.47 million, supported by a 4% expansion in gross margins to US$64.4 million
- DGA Zimbabwe’s restructured operations masked 44% like-for-like revenue growth, Malawi achieved 25% volume growth despite currency headwinds, while Zambia faced 6% volume contraction
Harare - Diversified Victoria Falls Stock Exchange–listed (VFEX) company Axia Corporation Limited expects the relocation of Restapedic’s operations to Sunway City to unlock manufacturing efficiencies, while free cash generation will be channelled into growth initiatives without overstretching the balance sheet according to the latest financial statement for the full year ended 30 June 2025.
The company expects to unlock significant manufacturing efficiencies through consolidation of production under one roof, improved workflow integration, and modernised equipment that lowers per-unit costs and enhances product quality.
The strategic location also shortens supply chains, reducing lead times to retail outlets and boosting responsiveness to market demand.
The Group posted a 40% increase in profit after tax to US$8.47 million for the year period , up from US$6.06 million in FY2024.
This improvement was underpinned by a 4% expansion in gross margins to US$64.4 million, reflecting tighter cost of sales management and the absence of once-off restructuring costs that weighed on the prior year.
Operating expenditure fell 8%, bolstered by disciplined overhead control and recovery from prior-year debtor and inventory write-offs. Headline earnings per share surged 51% to 0.91 US cents, while shareholders’ equity strengthened 10% to US$66.9 million.
Net cash from operations remained robust at US$7.82 million, funding US$3.59 million in capital expenditure, including the completion of the new Restapedic factory, expansion of store networks, and additional delivery trucks.
Sales volumes were central to performance across all major units with TV Sales & Home (TVSH) volumes rosing 13% to 163,817 units, driven by aggressive credit terms and a 34% expansion in its credit book.
Restapedic volumes climbed 25% to 52,595 units, consolidating its position in premium mattresses and lounge suites, despite an 11% drop in lounge & suite revenue caused by production disruptions during relocation.
Transerv volumes increased 5% to 3.15 million units, with its specialised division surging 84% on strong solar product demand and fitment centre performance. Eight new Transerv outlets were opened, with seven more planned in FY2026.
Distribution Group Africa (DGA) experienced mixed results. Zimbabwe volumes fell 44% to 2.66 million units due to prior-year restructuring, but like-for-like sales grew 44% excluding restructured operations.
Regionally ,Malawi achieved 25% volume growth to 2.43 million units, although currency depreciation reduced revenue by 15%. While Zambia’s volumes declined 6% to 700,939 units, impacted by inflation, price increases, and substitution by locally manufactured alternatives.
The operating environment remained difficult. Zimbabwe’s 43% currency devaluation in September 2024 triggered US$2.3 million in losses from Treasury Bill holdings, while high inflation, tight liquidity, and counterfeit products constrained consumer demand.
Malawi’s high 26% policy rate, drought-induced agricultural disruptions, and forex shortages created further headwinds, while Zambia benefited from stable GDP growth of 4.5% in Q1 2025 but faced inflationary pressures, high borrowing costs, and competitive pricing challenges.
Looking ahead, Axia is focused on expanding its footprint, enhancing digital channels, and diversifying its product offering to maintain market share against informal and regional competitors.
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