Axia hit with US$2.28m financial loss
LIVINGSTONE MARUFU
Axia Corporation Limited was forced to absorb a financial loss of US$2.287m after the September 2024 collapse of the Zimbabwe Gold (ZiG), which was officially devalued by 43% in the biggest slump since the currency’s launch in April 2024.
The shock depreciation, which slashed corporate balance sheets and left businesses reeling, emanated from ZiG treasury bills tied to outstanding auction funds.
In a statement accompanying full-year results for the period ended June 30, 2025, Axia chairman Luke Ngwerume said the group was still recovering from the scars of the September disaster.
“The local currency was officially devalued by 43% in September 2024, this devaluation resulted in substantial financial losses amounting to US$2.287m being incurred for the group especially on the ZWG Treasury Bill instruments arising from outstanding auction funds,” Ngwerume said.
He added that the ZiG had since stabilised, thanks to interventions from the central bank.
Despite the blow, Axia , which operates TV Sales & Home (TVSH), Transerv and Distribution Group Africa (DGA), and has operations in Zambia and Malawi ,reported revenue of US$196.473m during the year, up 1% on the prior period. Gross margin rose 4% on the back of cost rationalisation.
Operating expenditure fell 8%, aided by cost controls and the absence of once-off restructuring and write-off costs from the prior year. Profit after tax surged 40% to US$8.471m, while headline earnings per share climbed 51% to USc0.91. Borrowings fell by US$4.47m, strengthening the balance sheet.
Axia generated US$7.82m net cash from operating activities, just 1% down from the previous year, enabling it to spend US$3.587m on capital projects including the Restapedic factory, new stores and delivery trucks.
Looking ahead, Ngwerume said Axia will continue pursuing growth across all units, expanding its product range and footprint.
“We will look at increasing the range of our products to meet growing customer needs and at the same time attend to new market segments,” he said.
“We will seek growth in sales volumes through competitive pricing of our products, realising that the local customers have options to source products from competitors both local and regional.”
TVSH and Transerv are set to open several new branches this financial year, while the group consolidates and expands digital channels. Manufacturing operations are being relocated to Sunway City for greater efficiencies and synergies in bedding and furniture production.
Ngwerume stressed that Axia will maintain a “dual-pronged financial strategy” — preserving a strong financial position while using strategic borrowing to fuel growth. The company also declared a dividend following the solid performance.
“The group is looking forward to a very productive year ahead,” Ngwerume added.
