Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
AXIA Corporation Limited says it remains focused on executing expansion projects countrywide and extending its retail store footprint with an additional Bulawayo outlet planned in the fourth quarter.
The company operates within the specialty retail and distribution sector and has three operating business units, namely TV Sales & Home (TVSH), Transerv and Distribution Group Africa (DGA).
TVSH is a leading furniture and electronic appliance retailer with sites located countrywide.
Transerv retails automotive spares, by utilising multiple channels to service the needs of its customers countrywide.
In a latest trading update for the third quarter ended 31 March 2022, the group said despite continued shortages of foreign currency on the official auction system coupled with increased arbitrage and market distortions, which negatively affected its operations, it was forging ahead with expansion projects.
“The group remains focused on executing the expansion opportunities as previously advised. Although Covid-19 remains endemic, the board is confident that we will attain our growth targets and value preservation while ensuring all our staff continue with safe working measures,” reads part of the update.
Already, during the quarter, under its Transerv, it has opened two retail shops in Victoria Falls and Chiredzi.
A fitment centre at Chikwanha is ready to start trading soon, it said, adding that the Avondale fitment centre (formerly Autocycle) opened its doors to the public in the third week of April.
Before the financial year-end, more retail shops in Bindura, Karoi and Zvishavane are planned.
TV Sales and Home plans to open three outlets, one in Bulawayo and two in Harare.
According to the trade update, TV Sales and Home unit volumes for the third quarter ended 31 March 2022 were up 24 percent compared to the same period in prior year.
“Firm volume performance was attributed to the increase in trading days in current year compared to prior year where major restrictions to social and economic activity were in effect, following the advent of the Covid-19 pandemic,” said the company.
“Year-to-date volumes were up 15 percent from same period in prior year. In addition to the increased trading days, the improved performance was driven by the refurbishment of some of our stores that include Mbuya Nehanda and Gweru Main stores.
“Growth remains a key focus area and the business plans to expand its retail store footprint with three new stores scheduled to open in the 4th quarter, one in Bulawayo and two in Harare.”
Axia said significant growth was recorded under the Transerv unit but it noted that challenges in obtaining foreign currency to ensure optimum stocking levels at all times were incurred.
“Year to date volumes were 13 percent up compared to same period last year while the quarter registered growth of 15 percent compared to the same period last year,” it said.
Year to date volumes for DGA Zimbabwe wing were 22 percent below the prior comparative period and 21 percent below same quarter in the prior year.
The group said on 1 July 2021, DGA Zimbabwe acquired a 50 percent stake in National Foods Logistics, a warehousing and distribution company that provides National Foods Limited with its warehousing and distribution requirements.
“The purchase and funding consideration for this transaction was US$1,1 million. The transaction was approved by the Competition and Tariff Commission (CTC) on the 4th of March 2022.”
On regional operations in Zambia, third quarter volumes were nine percent down compared to the comparative period, owing to the impact of the termination of Johnson & Johnson agency.
Year to date volumes were 16 percent below the prior comparative period. In Malawi, third quarter 2022 volumes were 53 percent up compared to third-quarter results in the prior year due to the introduction of new agencies namely Clover and Unilever and good support from Colgate. — @nqobilebhebhe
Online Reporter
Bongani Ndlovu