TV Sales entices Samsung return
BUSINESS REPORTER
TV Sales & Home (TVSH) , a division of Axia Corporation’s unit, has persuaded Samsung, the world’s largest electronics company, to return as a trading partner, as part of efforts to expand its business.
Luke Ngwerume, the board chairman of Axia, confirmed the development saying: “The business managed to re-engage Samsung Electronics as a trade partner after a very prolonged absence and the potential of this partnership is significant.”
The collaboration comes at a time TV Sales plans to open four stores in the first half of this fiscal year in an attempt to handle a rise in imports and locally made goods.
“At least four new stores will be opened in the first half of the new financial year with a new store concept, bedtime store, opening two stores. The first outdoor world garden furniture store was opened in September 2023. Volumes are expected to improve in the new financial year, ceteris paribus, following the addition of new home appliances and homeware distribution business lines.The operating environment was characterised by a surge in inflation which led to the adoption of a blended inflation rate, surges in market liquidity and the depreciation of the local currency which worsened during the last six months of the financial year,” Ngwerume said.
Plans are in place, he said, to keep growing the network of retail locations.”
Axia reported revenue of US$203.8m in its full year financial results to June 30, 2023, up from US$204.18m in the previous comparative period.
Ngwerume said that the group experienced growth in gross margin, up 2% from the previous year, in spite of the decline in revenue.
He said that although cost pressures were visible in fuel and human capital costs, which led to increases over the comparative period, management made an effort to keep operating expenditures under control.
The company reported US$20.84m in operating profit, a 16% decrease from the comparable period.
Due to the local currency’s tremendous depreciation in the final quarter of the fiscal year, the financial loss line is primarily made up of foreign exchange losses from the depreciation of monetary assets denominated in the local currency.
The net interest expenses were US$3.22m, of which 48% was incurred during the first quarter of the fiscal year due to a sharp increase in interest rates on borrowings denominated in Zimbabwe dollar.
There was a 34% decline in both headline and basic earnings per share.
The group’s financial position remained solid. Borrowings grew by US$3.19m
The group’s operations brought in $15.105m in cash, allowing it to spend US$6.6m on capital expenses during the year.
The organisation will be able to carry out exciting expansion opportunities thanks to its free cash generation.
