11% Increase in Revenues: Axia Management Focused on Risk Management and Expansion
- What actions has Axia's managment taken to manage risks on extent of debtors' balances?
- Axia's management has decided to stop supplying some customers to manage the risk on the extent of debtors' balances, especially in an inflationary environment.
Business Units Overview
- Touch Distributors – Turnovers and volumes continue to grow. Established a new business and a retail store is set to open in Harare.
- Transerv – Revenues 11% above the prior year and volumes marginally down. Two new shops opened, and a wholesale division at its Head office.
- DGA Zimbabwe – Volumes were 26% below prior year and Q3 volumes were 7% down. Stopped supplying some customers to manage risk on the extent of debtors’ balances.
- DGA Region – Zambia experienced sharp Kwacha depreciation. Malawi foreign currency shortages reduced orders and selling of imported stock.
Outlook
The Zimbabwean operating environment remain challenging with many distortions. Management is focused on exploring expansion opportunities and hopes for progressive policies to foster stability and confidence in the market.
Useful links
- Axia Corporation Limited (AXIA.vx) Q32023 Interim Report
- Axia Corporation Limited on AfricanFinancials
- Corporate Website
About Axia Corporation Limited (AXIA.vx)
Axia Corporation Limited is a retail enterprise that sells specialty homeware furniture and electrical appliances through 38 nationwide retail outlets; and retails automotive spares across multiple channels with a footprint that stretches to Zambia and Malawi. The company’s core expertise lies in providing a reputable service for inbound clearing and bonded warehousing; ambient and chilled/frozen warehousing services; logistics, marketing, sales and merchandising services. Axia has three business units which include TV Sales & Home (TVSH), a leading furniture and electronic appliance retailer; Transerv, retailing automotive spares, and Distribution Group Africa (DGA), an established distribution and logistics company.
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