RETAIL and distribution company, Axia Corporation Limited, has recorded revenue increases from its TV Sales & Home and Transerv units on the back of better pricing models during its third-quarter performance ended March 31, 2025.
This comes as Axia reported a 12% decline in profit after tax to US$5,29 million for its half-year financial period ended December 31, 2024, compared to the prior period.
Axia’s main operating business units are TV Sales & Home, Distribution Group Africa (DGA) and Transerv.
“The trading environment in the third quarter showed marginal improvement across the group’s markets. In Zimbabwe, the continued tight monetary policies and restrained liquidity helped slow down the rate of depreciation of the Zimbabwe Gold (ZWG) currency,” Axia said.
“In Zambia, the Kwacha experienced further weakening against the USD, driven by high import demand and limited export receipts, but formal foreign currency availability remained generally stable. Malawi continued to face challenges with foreign currency shortages, although some improvement in official inflows was noted.”
Axia said the year-on-year inflation across all three markets remained elevated, exerting pressure on consumer spending, while localised cost increases and currency volatility continued to impact pricing and demand.
From its TV Sales & Home subsidiary, revenue grew by 5% during the third quarter on the back of a 15% volume growth compared to the same period the previous year.
On a year-on-year basis, revenues were up 6%, while volumes grew 9%.
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“The significant volume growth is a direct result of our pricing as well as growth in credit sales. The business opened two new stores during the quarter,” Axia said.
Regarding Transerv, revenue grew by 13% during the third quarter on the back of a 10% volume growth compared to the same period the previous year.
On a year-on-year basis, revenues were up 21%, while volumes grew 6%.
“The growth is attributed to the strengthening of demand for spare parts and oils as well as the competitiveness of our product offering to the market,” Axia said.
However, for DGA Zimbabwe, the group reported that revenue was down by 18% during the third quarter on the back of a 25% volume decline compared to the same period the previous year.
“On a year-on-year basis, revenues were down 23%, while volumes were also down 50%. The decline is due to a major supplier who has partnered with DGA to form a joint venture to distribute its products, hence, their sales are no longer consolidated as part of DGA sales,” Axia said.
“However, revenues from continuing operations grew by 42% compared to the previous year as our efforts to penetrate new routes to market started to pay dividends.”
Regionally, DGA, in Zambia, saw revenue up by 3% during the third quarter, despite a 4% volume decline compared to the prior year.
“On a year-on-year basis, revenues were up 6% while volumes were down 17%,” Axia said.
In Malawi, DGA’s revenue dropped 14% during the third quarter, on the back of a marginal volume decline compared to the same period in the previous year.
“The group remains cautiously optimistic about the operating environment across its key markets — Zimbabwe, Zambia and Malawi — for the remaining quarter ending June 2025. In Zimbabwe, expectations are anchored on the recovery of demand for our products as well as anticipated continued growth until the end of the fourth quarter,” Axia said.
“In Zambia and Malawi, stable macroeconomic fundamentals and improved foreign currency availability are expected to support the recovery of consumer demand and retail activity. The group remains focused on operational efficiencies, cost containment and sustaining cash generation.”
NewsDay Business understands that the group will evaluate measured expansion opportunities in selected markets where demand fundamentals remain
solid.
