HARARE — Diversified retail and manufacturing group Axia Corporation Limited delivered a strong performance for the half-year ended December, with significant growth across most of its business units, underpinned by store expansion, strong seasonal trading, and increased consumer demand.
The group’s TV Sales & Home division recorded a 37% increase in sales volumes, supported by the opening of four new stores during the period. The company also launched its first Garisson store at Tongogara Barracks, also known as KG6, marking a strategic move to tap into new customer segments. Axia plans to open two additional stores by June.
Seasonal retail promotions significantly boosted performance, with Black Friday and Christmas trading driving a 33% increase in customer traffic. The division’s credit book expanded by 70%, reflecting growing uptake of instalment-based purchases.
In manufacturing, the Restapedic bedding unit produced 32,315 beds during the period, representing a 26% increase in volumes and a 29% rise in revenue. Factory capacity utilisation improved notably, reaching 5,500 beds per month, up from 4,300 previously.
However, Axia noted that further growth in the bedding segment is being constrained by shortages of quality timber and the impact of a firmer South African rand, which has raised input costs.
The Restapedic Lounge division experienced a 10% decline in sales volumes following operational disruptions linked to the relocation of its factory to Sunway City. The unit currently produces an average of 550 lounge suites per month, with production expected to stabilise as operations settle at the new facility.
Meanwhile, Axia’s Transerv retail chain recorded 16% growth in sales volumes during the half-year. The company opened four new outlets and plans to add seven more stores before year-end, reinforcing its nationwide retail footprint.
The group’s distribution arm, DGA, delivered the strongest growth across the portfolio, with volumes rising 44%. The unit distributes major consumer brands including Nestlé—the division’s largest revenue contributor—alongside products from Unilever and Rhodes Food Group.
Despite the strong growth, Axia warned that the distribution business continues to face intensifying competition from smuggled goods and counterfeit products, which are increasingly affecting formal retail channels in the market.
Overall, the half-year results highlight Axia’s strategy of retail expansion, manufacturing scale-up, and brand distribution, positioning the group to capitalise on consumer demand despite ongoing supply chain and market challenges.