Axia records robust business performance in the first nine months
HARARE – Axia Corporation Limited reported a robust performance across its business units in the first nine months of full-year 2021, despite the impact of COVID-19 on businesses especially during the quarter to end-March 2021 (Q3 FY2021).
After three quarters, sales volumes at the Group’s flagship operation, TV Sales & Home – leading furniture and electronic appliance retailer were 19% ahead of the previous comparative period.
“This was despite volumes for the third quarter being 18% below prior year, owing to the lockdown interruptions in January and February 2021,” the Group said in its trading update for the FY2021 third quarter and nine months ended 31 March.
“The momentum on credit sales re-introduced in the first quarter of the financial year continues to increase.”
As a result, the business’ credit book increased by 36% on the second quarter whilst on the expansion side, it opened a new store in Ruwa during the period under review as it widens reach to customers.
At Distribution Group Africa (DGA) Zimbabwe – a distribution and logistics company, total volumes traded for the nine months to March 2021 were 4% ahead of the prior comparative period, while 3% up during the third quarter which could have been better had it not been for the reduced business trading hours during the January to February lockdown period, which affected deliveries to the market.
“The business continues to preserve its balance sheet in real terms and will also be focusing on improving volumes,” said the Group.
DGA Region operations in Zambia recorded a 22% slump in volumes during the third quarter attributed to price increases aligned to the depreciation of the Kwacha against the US Dollar and the SA Rand.
Likewise, total volumes traded for the nine months were 10% below prior year.
In Malawi, volume performance recovered by 20% in the third quarter over the comparative period.
“Volume recovery was anchored by discount support from a key supplier which allowed the business to offer more competitive pricing in a market dominated by grey imports. In addition, the introduction of new agencies namely BIC and Regina contributed to the volume increase,” said the Group.
Volumes at Transerve which specialises in retailing automotive spares, grew by 42% ahead of the comparative quarter and by 59% up in the nine months period ahead of prior year despite the lockdown restrictions encountered during that period.
The Group said the business has been affected by the global slowdown in the international supply chain caused by the COVID-19 pandemic, resulting in longer lead times on inventory orders.
To mitigate the impact, measures have been put in place to maintain stockholding at optimum levels.
On the outlook, the Group affirmed belief that its businesses will continue to thrive based on its dedicated staff, adaptable business models as well as its desire to improve, win and create value.
“At present, the financial status of the Group remains healthy, and the impact of the COVID-19 has not created any issues from a solvency or liquidity perspective.”