- TV Sales and Home division saw 8% volume growth, with 4% year-to-date increase
- Restapedic bedding unit reported 35% revenue and 54% volume growth year-to-date
- DGA Zimbabwe underperformed, with 24% revenue and 46% volume decline
Harare- Diversified ZSE-listed retail group Axia has reported volume and revenue growth across all its business segments except DGA Zimbabwe and Zambia during the third quarter of the 2024 fiscal year, signaling a strong performance for the full year.
The group's flagship TV Sales and Home division led the way, with volumes increasing by 8% year-over-year. The third quarter saw a 1% improvement compared to the prior year period, while the year-to-date position was 4% ahead on the back of an 11% jump in volumes.
"This is attributed mainly to our steadily growing store network as well as maintaining our brand as the trusted quality provider of household furniture and appliances," the company stated.
The group plans to continue expanding its bedtime specialty stores, with two more openings planned before the end of the fiscal year.
The Restapedic bedding unit, following the commissioning of the new Sunway 10,000 facility in Harare, recorded a 35% year-to-date revenue increase and a 54% surge in volumes. The third quarter saw a 26% revenue rise and a 52% jump in volumes compared to the prior year period.
"Due to significant production, the local market is failing to keep up with the production, hence efforts have been made to find new markets to cater for the additional production capacity that is not able to be taken up by local demand," the company explained.
Legend Lounge and Transerv also delivered strong performances, with the former reporting an 11% year-over-year volume increase and the latter posting a 10% revenue rise in the third quarter and a 9% year-to-date improvement.
"The introduction of credit sales and solar products to the portfolio of products, has helped in driving sales for the quarter," the company said of Transerv's performance.
The sole exception was DGA Zimbabwe, where revenues in U.S. dollar terms declined 24% year-to-date on a 46% drop in volumes. The company attributed this to a "depressed formal trading environment" that severely affected demand and hampered customers' ability to settle invoices. DGA Zimbabwe is currently undergoing a restructuring exercise to streamline operations and support its key agencies more efficiently.
DGA Zambia also faced challenges, with revenues and volumes down 9% and 30% respectively in the third quarter compared to the prior year period, due to market volatility and currency depreciation.
However, the group's Malawi operations delivered a strong performance, with year-to-date revenues and volumes up 29% and 10% respectively, as management overcame foreign currency shortages.
Looking ahead, Axia is hopeful that recently introduced monetary measures will bring stability to the operating environment and stimulate demand. The group remains focused on exploring expansion opportunities in the market.
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