Axia Corporation Limited recorded a strong rebound in profitability for the financial year ended 30 June 2025, underscoring the benefits of cost rationalisation and operational restructuring in a difficult regional economic environment.

The retail and distribution group grew operating profit by 32 percent to US$25.9 million, despite revenue increasing marginally by one percent to US$196.47 million. 

The performance came against the backdrop of currency volatility, inflationary pressures and subdued consumer spending across Zimbabwe, Malawi and Zambia.

Profit for the year rose sharply by 40 percent to US$8.47 million, while headline earnings per share increased by 51 percent to 0.91 US cents, reflecting improved efficiencies and disciplined cost management.

 Shareholders’ equity strengthened by 10 percent to US$66.92 million, reinforcing the group’s balance sheet.

Axia said the prior year’s restructuring of its distribution business continued to yield positive results, while tighter control over operating expenses helped protect margins in an increasingly informal and price-sensitive retail market.

The TV Sales & Home unit delivered a 13 percent increase in sales volumes, supported by competitive pricing strategies, an improved product mix and the opening of three new stores. 

The division’s credit book expanded by 34 percent, highlighting strong demand for consumer financing amid constrained disposable incomes.

Transerv also recorded solid growth, with revenue rising by 18 percent and volumes increasing by five percent. The performance was driven by the opening of eight new retail outlets, steady demand at fitment centres and improved uptake in the solar division.

Axia’s manufacturing operations posted notable gains, particularly in the Restapedic bedding business, where revenue grew by 18 percent and volumes by 25 percent. The lounge division relocated to a new production facility during the year, a move expected to improve efficiency and support future capacity expansion.

Distribution Group Africa showed resilience across its regional operations. The Zimbabwe business recorded a 44 percent revenue increase on a like-for-like basis, while Malawi volumes grew by 25 percent, despite currency-related headwinds.

Axia plans to expand its retail footprint, enhance product quality and broaden its product range across core business units. The group is also focusing on consolidating its digital channels to improve customer access, while maintaining competitive pricing to drive volumes.

 Management said future growth will be funded through internally generated cash flows, underpinned by a strengthened financial position.

On sustainability, Axia reported significant reductions in energy consumption after rolling out solar power systems and rationalising certain operations. Electricity usage fell by 50 percent, while liquid fuel consumption declined by 30 percent. 

The workforce increased by 10 percent to 1,861 employees, and recordable work-related injuries dropped by 11 percent.

The group said it remains committed to strong corporate governance, risk management and regulatory compliance, as it navigates ongoing economic uncertainty in the region.

Despite a constrained operating environment, Axia’s latest results point to a business that has stabilised its core operations and positioned itself for measured growth, anchored on efficiency, scale and disciplined execution.