Retail and distribution group Axia Corporation Limited recorded a 68 percent increase in profit before tax to US$19.39 million for the year ended June 2026, as strong consumer demand lifted sales across its major business units.

Revenue increased 27 percent to US$249.55 million, while operating profit rose 21 percent to US$31.46 million.

The group also recorded stronger cash generation, with cash generated from operations rising 67 percent to US$26.01 million.

Axia said the performance was supported by strong demand and a disciplined approach to pricing.

“Axia delivered a robust financial performance for the year ended 30 June 2026, characterised by significant top-line and bottom-line growth,” the group said.

TV Sales & Home was among the strongest performers, recording a 37 percent increase in volumes and a 36 percent rise in turnover.

The company said record sales during Black Friday and Christmas promotions contributed to the growth, while its credit book expanded by 70 percent.

The Restapedic Bedding and Restapedic Lounge businesses also recorded revenue growth of 30 percent and 29 percent respectively, despite challenges linked to the relocation of the factory.

Distribution Group Africa Zimbabwe recorded a 50 percent increase in revenue following a 39 percent growth in volumes and the acquisition of a major local agency.

Transerv's revenue increased 10 percent, while Axia completed the acquisition of the remaining non-controlling interest in the business, taking its effective shareholding to 100 percent.

The group said trading conditions in Zimbabwe remained relatively stable, with average inflation at 4.4 percent during the period and a narrowing gap between formal and alternative market exchange rates.

“The trading environment in Zimbabwe remained relatively stable,” Axia said, adding that improved liquidity flowing from the informal market benefited the formal sector.

However, the group continues to face pressure from counterfeit products and informal businesses, particularly in distribution and wholesale.

Axia also disclosed that retrospective tax assessments by the Zimbabwe Revenue Authority (ZIMRA) had resulted in additional income tax and VAT claims, including penalties, exceeding US$3 million.

The company said it was challenging the assessments.

Despite these challenges, Axia plans to expand its retail footprint in the coming financial year.

The group plans to open nine new TV Sales & Home stores and six Transerv outlets.

It will also develop a new distribution centre in Sunway City for TV Sales & Home, which it said would improve logistics and reduce warehousing costs.

The company is also exploring further acquisition opportunities in Zimbabwe and Zambia.

“Management remains focused on growing and protecting market share by offering quality products at competitive prices,” the group said.

The strong financial performance also prompted the board to declare a final dividend of US$0.0020 per share, bringing the total dividend for the financial year to US$0.0040 per share.

The final dividend is expected to be paid on or around October 16 to shareholders registered by October 9.

Axia's headline earnings per share increased 33 percent to 1.21 US cents, while borrowings declined 20 percent to US$12.77 million.