AXIA Corporation Limited says it sees greater opportunities going forward helped by struggling competitors as the going gets tough economically.
Zimbabwe is struggling with acute cash shortages and local quasi-currencies that are increasingly losing value against the US dollar.
CE John Koumides told shareholders at the company’s annual general meeting held on Tuesday in Harare that the group remains confident despite the tough operating environment in Zimbabwe.
In a trading update for the four months ending October 30 2018, Koumides, however, expressed concern on government’s lack of support in terms of foreign currency allocation to the retail sector.
The central bank is providing various foreign currency facilities to strategic sectors of the economy such as manufacturing.
During the period, volumes rose 31% at TV Sales & Home, while Distribution Group Africa (DGA) volumes improved by 21%.
Volumes for the regional operations were up between 2% to 3%.
Transerv’s volumes were down 4% for the four months but profitability improved compared to prior year.
Koumides said the group experienced its busiest trading day on “Black Friday” as prices were slashed across its business units, particularly TV Sales & Home.
Zambia and Malawi operations are doing well, but Zambia is largely affected by exchange rates, making it a tougher market, he said.
TV Sales & Home expanded its operations after buying a significant stake in a bedding concern.
“The group sees greater opportunities going forward, especially given that other smaller competitors are currently struggling given the environment. Transerv is adequately stocked given the current economic situation and has enough stocks ahead of the festive holidays. Challenges have been experienced in terms of battery supplies due to protectionism policies meant to protect local manufacturers,” he said
Overall, he said, the group has been very aggressive and has been able to meet its obligations without serious challenges and most of the obligations were pre-paid.
A total U$14 520 in auditors’ fees were approved during the annual general meeting while US$465 209 was approved for Deloitte and Touché who were reappointed auditors for the next financial year. — Staff Writer.