Axia Corporation Limited (AXIA.zw), listed on the Zimbabwe Stock Exchange has released its FY2018 results. Below is an excerpt from the results on the TV Sales & Home division:
OPERATIONS The main operating business units in the Axia Corporation Limited Group are TV Sales & Home (TVSH), Distribution Group Africa (DGA) and Transerv. TVSH is the leading furniture and electronic appliance retailer with sites located countrywide. DGA’s core areas of expertise lie in inbound clearing and bonded warehousing, ambient and chilled warehousing, logistics, marketing, sales and merchandising services. Transerv retails automotive spares, by utilising multiple channels to service the needs of its customers.
TV Sales & Home
TV Sales & Home achieved a great result with a 19% increase in units sold over the prior year, which translated into a turnover growth of 36% driven by significant growth in both cash and lay bye sales. The instalment debtors’ book decreased by 11% over the comparative period as credit sales slowed in the first half of the financial year. Credit sales grew in the last quarter of the financial year, arising from promotions and credit deals which were well received by the market and are promising to show significant growth in the new trading year. The quality of the book remained good throughout the year.
Inventory levels remain good and more focus has been placed on locally manufactured goods. The local manufacturers have managed to supply stock at a very good rate, however these partnerships are key in ensuring that supplies remain high. Management has continued to support the key suppliers to assure continuity of production.
The business has continued to grow its store network by opening three new stores, two in Harare and one in Kadoma, whilst an underperforming store in Harare was closed during the financial year. This brought the total store network at June 2018 up to 43 outlets countrywide. The refurbished Borrowdale, Sam Levy Village, store has become the flagship store in the store network. Sites for additional stores have been identified and such stores are set to open before the end of the first half of the new financial year, in time for the peak trading season. Six stores were upgraded during the financial year and more stores are scheduled for upgrades, to world class standards, in the current financial year.
