Axia Corporation Limited (AXIA.zw) Q12022 Interim Report
The first two months of the quarter were characterized by a Covid 19 Level 4 Lockdown with a concomitant reduction in trading hours. Despite this, the Group’s retail operations registered good volume growth. Inflation and the currency depreciation continued during the quarter. Towards the end of the quarter, foreign currency issues started to dominate the market. It is our fervent hope that sustainable, practical and progressive policies are adopted to deal with these issues and we are encouraged by the recent attempts by the Authorities to work with the Private Sector in this regard. Despite these challenges, the Group remains focused on executing strategic initiatives and opportunities as advised in our 30 June 2021 results publication to continue to grow stakeholder value.
TV Sales & Home
Volumes grew by 36% compared to the same period last year and continues to trend upwards, benefiting from competitive pricing, consistent product supply, the positive momentum of credit offerings and exciting consumer promotions namely Winter Warmer, Birthday Bash and Euro 2020 that were active in the quarter.
The business acquired an additional 11% in Restapedic, a local bed manufacturer, to increase its shareholding to 60% effective 1 July 2021. This has enabled TV Sales & Home to fund the construction of a new multi-million US Dollar state of the art factory, which commenced in August 2021. This new factory will result in the business growing its production to meet increasing local demand and service export markets.
A new retail store is scheduled to open in Bulawayo by the end of the second quarter.
Volumes continued on a positive trajectory being 25% above the comparative period. The business continues to closely manage its costs and review its product and service offerings with a view to keep improving the product range and service quality provided to customers. New store sites have been secured in Chiredzi and Victoria Falls.
Volumes were 20% below the