Axia buoyant on recovering demand amid economic headwinds

ROBIN PHIRI

Axia Corporation Limited is buoyant on the prospects of sustained demand recovery despite a volatile economic landscape, reporting marginal improvements in trading conditions across its regional markets during the third quarter.

The group pointed to tight monetary policies and constrained liquidity as key factors slowing the depreciation of the Zimbabwe Gold (ZWG) currency. However, the broader economic context remains challenging, with persistent inflation continuing to dampen consumer spending power.

Still, Axia sees glimmers of opportunity. “However, localized cost increases and ongoing currency volatility are still impacting pricing and demand, necessitating a cautious approach,” the company noted.

Encouraged by a steady rebound in volumes, the diversified retail group is intensifying efforts to enhance operational efficiencies and tightly manage costs — strategies central to preserving cash generation and navigating currency turbulence.

“The group will also continue to evaluate measured expansion opportunities in selected markets,” Axia stated, signaling a long-term growth strategy that remains intact despite the short-term challenges.

In the third quarter, group revenue rose by 5%, buoyed by a strong 15% increase in volumes compared to the same period last year. On a year-on-year basis, revenue climbed 6%, while volumes grew 9%. This growth was underpinned by competitive pricing, expanded credit sales, and the opening of two new stores, underscoring the group’s agility in capitalizing on emerging demand.

However, not all segments performed equally. DGA Zimbabwe recorded an 18% revenue decline during the third quarter, with volumes falling 25% compared to the same period last year. On an annual basis, revenue dropped 23% while volumes plunged 50%. This steep fall is attributed to a key supplier forming a joint venture with DGA, leading to the exclusion of those sales from consolidated figures.

In contrast, revenue from the remaining operations surged by 42% year-on-year, as Axia’s push into new market channels began to pay off.

As it heads into the final quarter, the group remains vigilant, closely monitoring economic developments while remaining poised to seize opportunities that accompany the ongoing recovery in demand.

While risks persist — from exchange rate instability to inflation-driven cost pressures — Axia Corporation remains buoyant, underpinned by a deliberate strategy focused on efficiency, market responsiveness, and targeted expansion. The company’s steady hand in turbulent times signals its resolve to drive sustainable growth in a demanding operating environment.