Axia Corporation Limited, a leading retail and distribution group listed on the Victoria Falls Stock Exchange, has announced its audited financial results for the fiscal year ending June 30, 2025, reporting robust growth and improved profitability despite challenging economic conditions across its operating regions.
The group’s revenue for the year was approximately US$196.5 million, reflecting a modest 1% increase from the prior year.
Gross margin improved by 4%, underscoring the success of cost rationalisation initiatives.
Operating profit before depreciation and amortisation rose sharply by 32% to US$25.9 million, driven by tighter cost management and the absence of once-off expenses recorded in the previous year.
Profit after tax climbed 40% to US$8.47 million, while headline earnings per share surged 51% to 0.91 US cents.
The Board declared a final dividend of 0.16 US cents per share. Combined with the interim dividend, total payouts for the year reached 0.28 US cents per share. Shareholders registered by October 10, 2025, will receive payment around October 17, 2025.
Chairman Luke Ngwerume highlighted the operating environments in Zimbabwe, Malawi, and Zambia, citing inflation, currency instability, and liquidity constraints, particularly in the first quarter.
Despite these challenges, shareholders’ equity grew 10% to US$66.9 million, while net cash generated from operations held steady at US$7.8 million.
Related Stories
Performance across divisions was mixed. TV Sales & Home grew revenue by 3%, driven by a 13% increase in volumes and an expanded store footprint. Restapedic’s bedding products posted an 18% revenue rise on stronger volumes and brand equity, though its lounge suite division saw an 11% decline due to production disruptions, expected to recover following relocation to a new facility.
Transerv, the automotive and solar retailer, recorded 18% sales growth, supported by stronger customer demand and new shop openings.
Distribution Group Africa reported varying results: revenue in Zimbabwe fell 11% due to informal market competition and restructuring; Malawi’s revenue dropped 15% as currency depreciation offset volume growth; while Zambia struggled with both volume and revenue declines amid inflationary pressures.
Capital expenditure for the year stood at US$3.6 million, directed toward manufacturing expansion, new stores, and delivery fleet upgrades. The Group reaffirmed its commitment to sustainability, aligning reporting with Global Reporting Initiative standards.
Looking forward, Axia plans to accelerate retail expansion with new outlets and enhanced digital channels. The relocation of its manufacturing operations to a modern facility is expected to boost efficiency and competitiveness.
The group will pursue growth while maintaining financial strength, strategically deploying borrowing to fund key projects.
The Board expressed appreciation to management, staff, customers, suppliers, and stakeholders for their contributions in navigating a tough economic environment.
The audited results, accompanied by an unqualified opinion from BDO Zimbabwe Chartered Accountants, affirm Axia Corporation Limited’s solid financial position and positive outlook for the year ahead.
Leave Comments