• DGA Zimbabwe led with 39% revenue growth and 44% volume increase, boosted by Nestle's rapid expansion contributing 25% of Q2 turnover
• Restapedic Bedding delivered 29% revenue uplift on 26% volume growth, driven by higher cash sales and factory utilization rising
• Expansions accelerated with Transerve adding 4 shops (total 56, 7 more planned), TV Sales & Home opening 2 branches (2 more by June)

Harare- Axia Corporation has delivered a robust half-year performance amid regional economic headwinds, with standout revenue surges across several key subsidiaries highlighting resilience in consumer goods and retail sectors.

Leading the charge, DGA Zimbabwe posted 39% revenue increase, fuelLed by a 44% jump in volumes, as Nestle's rapid scale-up emerged as the largest contributor to second-quarter turnover at 25%.

This broad-based expansion was bolstered by strong showings from agencies like Unilever and Rhodes, though partially offset by softer performance from Johnson & Johnson, reflecting Axia's strategic pivot toward diversified partnerships in a fiercely competitive fast-moving consumer goods landscape plagued by informal traders and counterfeit influxes.

In the bedding division, Restapedic Bedding achieved a 29% revenue uplift on the back of 26%volume growth, driven primarily by a surge in cash sales that propelled factory capacity utilization from 3,400 to 5,500 beds per month.

This efficiency gain reflects operational enhancements and market demand recovery, positioning the unit for sustained momentum. Similarly, TV Sales and Home recorded a 29% revenue rise alongside 37% volume growth, supported by the opening of two new branches and plans for two more in Kwekwe and Bulawayo by June 30, signaling aggressive expansion to capture untapped urban markets in Zimbabwe.

Transerve, Axia's tire and automotive services arm, reported an 8% revenue growth propelled by 16% higher volumes, with market footprint bolstered through the addition of four shops, bringing the total to 56.

Looking ahead, seven sites are in the pipeline for second-half openings, complemented by considerations for a new product range, which could further entrench its competitive edge in a sector ripe for innovation.

DGA Zambia mirrored this upward trajectory with 28% revenue growth on 16% volume increases, though management is actively addressing concentration risks from foreign agencies by pursuing more local partnerships amid intensifying FMCG rivalry from quality-improving domestic brands.

However, not all units escaped challenges, as DGA Malawi experienced a 12% revenue decline despite 24% volume growth, likely attributable to pricing pressures or currency fluctuations in the region. Restapedic Lounge, meanwhile, saw modest 5% revenue gains tempered by a 10% volume drop, stemming from operational disruptions during its August relocation to Sunway City, with average factory utilization holding at 550 suites per month.

These mixed results illustrate Axia's broader navigation of geopolitical and economic volatilities, including counterfeit threats eroding margins and informal competition slowing sales velocity.

Therefore, Axia's performance underscores a strategic focus on volume-driven growth, capacity optimization, and geographic diversification, even as external pressures demand vigilant risk management. With expansions underway and agency portfolios evolving, the corporation appears well-poised to mitigate ongoing threats while capitalizing on consumer demand recovery, potentially setting the stage for full-year outperformance in Southern Africa's dynamic markets.

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