Online Reporter
Business Reporter
Axia Corporation will invest at least US$6 million to build a centralised warehouse in Sunway City, Harare, for its flagship retail division, TV Sales & Home, to streamline logistics efficiency and reduce overhead expenses.
Briefing financial analysts on Wednesday, finance director Mr Simbarashe Mambanda said the company currently relies on three separate facilities, a fragmented setup that has severely hampered operational efficiency and driven up logistics costs.
Mr Mambanda explained that the decision to build the Sunway City hub comes as the company aggressively stockpiles inventory to cushion operations against supply chain disruptions and transit delays at regional ports and border posts caused by global geopolitical tensions.
“This should improve logistics and save on warehouse and distribution costs,” he said.
To protect its retail footprint from import bottlenecks, Axia has already expanded its buffer stock holdings to over three months of operational demand, with plans to increase this reserve to at least five months.
In terms of financial performance, Axia reported a 68 percent surge in profit before tax to US$19,39 million for the financial year ended June 30, 2026, up from US$11,54 million in the prior year.
Group revenue expanded 27 percent to US$249,55 million over the period, driven by aggressive volume expansion across its retail divisions. TV Sales & Home anchored the group’s retail performance after posting a 37 percent volume increase, while Distribution Group Africa Zimbabwe recorded a 39 percent volume surge following the acquisition of a new agency contract.
The group’s other operating divisions also delivered solid volume gains, with Restapedic Bedding rising 24 percent and automotive spares retailer Transerv growing 11 percent.
Gross profit for the year grew 20 percent to US$77,49 million, while operating profit before depreciation and amortisation (EBITDA) increased 21 percent to US$31,46 million despite absorbing higher operating costs and provisions for formal retail credit losses.
Pre-tax earnings were further buoyed by a sharp drop in foreign exchange losses to US$47,684, reduced net interest expenses of US$4,49 million following debt repayments, and US$3 million in proceeds realised from the divestment of two joint ventures.
Net profit growth was constrained by a higher tax bill of US$8,34 million, which included US$3,04 million in retroactive tax and Value-Added Tax (VAT) assessments levied by the Zimbabwe Revenue Authority.
Operational cash generation rose 67 percent to US$26,01 million, allowing the company to fund US$2,42 million in capital expenditure and reduce total interest-bearing borrowings by 20 percent to US$12,77 million.
Headline earnings per share climbed 33 percent to US1,21 cents, prompting the board to declare a final dividend of US0,20 cents per share, bringing the total annual payout to US0,40c per share.
During the financial year, Axia simplified its corporate structure by acquiring the remaining 12,25 percent non-controlling interest in Transerv through an all-equity deal valued at US$1,08 million.
Outlining the group’s future strategy at the briefing, management announced plans to open nine new TV Sales & Home outlets, six Transerv shops, and two fitment centres, while actively exploring further acquisition opportunities in Zimbabwe and Zambia.
