Axia revenues up 33 percent

HARARE - Conglomerate, Axia Corporation Limited lifted revenues by 33 percent to $134,2 million during the half year ended December 31, 2017, after pushing volumes under a tight cost containment regime, chairperson Luke Ngwerume said on Thursday.

The Zimbabwe Stock Exchange listed Axia, whose interests span from household goods sales to auto spares distribution, had reported $101,3 million in revenues during the prior comparable period in 2016.

Operating profit surged 54 percent during the review period to $13,3 million, from $8,6 million during the same period in 2016.

Ngwerume said pretax profit rose to $13,7 million, after ending the comparable period in 2016 at $8,9 million.

Improved financial results were powered by firming demand at TV Sales & Home and strong results from Distribution Group Africa Zimbabwe, which defied the foreign currency crisis and restrictions on imports, which has been in force for about two years.

Turnover at Distribution Africa Group rose by 19 percent, while operating profit firmed by two percent, backed by an increase in volumes, according to Ngwerume.

The group defied headwinds associated with foreign currency shortages in Zimbabwe, where industries have been crippled by a deadly currency crisis which has hit raw material and merchandise imports.

Payments for critical requirements such as medicine have also been affected.

“The group delivered a good set of results during the six months under review despite experiencing some challenges in making foreign payments to suppliers, difficulties in securing import permits and constraints in supply of some local products,” Ngwerume said in a statement accompanying the results.

He described the period as “difficult”.

“Increased sales volumes and cost containment enabled the group to perform well in the difficult operating environment.

“The group took proactive action to secure additional inventory and settle foreign creditors as rapidly as possible.

“This has resulted in a significantly changed working capital profile,” he said.

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