Harare – Conglomerate, Axia Corporation Limited revenue for the half year ended 31 December, 2019 increased by 74 percent to $234.1 million driven by a shift in the product mix to high margin products across its operations.

The Zimbabwe Stock Exchange listed entity whose interests span from household goods sales to auto spares distribution, reported $134.3 million in revenues during the prior comparable period in 2017.

At TV Sales and Home, volumes went up by 33 percent over the comparative period, which translated into a turnover growth of 63 percent. The turnover was driven by significant growth in both cash and credit sales.

Transerv recorded a marginal revenue growth of 4 percent over the comparative period.

Turnover at the Zimbabwean Distribution Africa Group rose by 91 percent over the comparative period while operating profit firmed over 100 percent backed growth in existing business and some price increases.

Axia’s overall operating profit surged 68 percent during the period under review to $22.4 million from $13.3 million during the same period in 2017.

Commenting on the Company’s results, Axia’s Chairperson Luke Ngwerume, highlighted that the period under review was generally faced with difficult trading conditions characterised by foreign currency constraints which which impacted supply of local products.

“Despite these factors, the Group’s Business units were resilient and this helped the Group to register a good performance,” he said.

Pretax rose to $22.8 million from $13.3 million in the comparative period, representing an increase of 65 percent.

Ngwerume said inflationary pressures continued across the board with respect to both stock inputs and operating expenditure, however the Group managed to stand firm and achieved profitability.

Basic and Headline earnings per share for the period improved by 52 percent to 1.81 cents.

“The Group contributed $2.086 million to the fiscus through the Intermediated Money Transfer Tax since it was increased from 5 cents per transaction to 2%, per dollar value from $10 to a limit of $500.000 in October 2018,” said Ngwerume.

The Group has declared an interim dividend of 0.60 cents for the period, representing 50 percent increase from 0.40 cents in the prior period.

“The dividend is payable in respect of the interim period ended 31 December, 2018 and will be paid in full to all shareholders of the Company registered at close of business on the 5^th of April 2019,” said Ngwerume.

“The payment of the dividend will take place on or around the 16^th of April 2019.

-Equity Axis News