Axia Corporation, one of Zimbabwe’s leading retail and distribution firms, reported strong festive season sales as bargain-hunters flocked to Black Friday and Christmas promotions, highlighting how discounts and promotional offers are driving big-ticket purchases for cash-strapped Zimbabweans.
Consumer incomes remain under pressure from a volatile exchange rate, stagnant wages and a high cost of living.
The group said in its half-year financial report for the period ended December 31, 2025 that it recorded a 22% increase in revenue to US$122,03 million compared to the prior year.
“The group reported revenue of US$122,031 million for the period, reflecting a 22% increase compared to the prior period driven by competitive pricing that lifted demand,” Axia chairman Luke Ngwerume said in a statement attached to the report.
“Gross margin improved by 10%, driven by competitive pricing that met market demand. Operating expenditure increased by 15% mainly due to growth in staff overheads as a result of new shops added and other variable costs.”
Axia generated net cash of US$11,71 million from operations, representing a 239% increase on the comparative period.
“This was a result of increased festive season demand,” Ngwerume said.
“This translated into enhanced free cash generation, enabling the group to incur capital expenditure for the period totalling US$1,497 million.”
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At its furniture and appliances division, TV Sales & Home, volumes rose by 37% to 112 774 units, driving turnover growth of 29%.
“The business experienced record turnover during the Black Friday and Christmas Ho-Ho Home promotions, with customer count increasing by 33% year on year and the credit book growing by 70% over same period last year,” Ngwerume said.
“Growth was primarily driven by the diverse and quality product range, competitive pricing, and the availability of competitive credit, which enabled more customers to acquire the quality products that are offered.”
Ngwerume said increased focus on e-commerce transactions and growth in the credit book, coupled with organic expansion of the store network, continued to drive the division’s growth.
Distribution Group Africa, the group’s largest earnings contributor, recorded revenue growth of 39% during the half-year on the back of a 44% increase in sales volumes to 1 721 653 units.
“A major local agency was secured in October 2025, and this contributed to the revenue and volumes growth,” Ngwerume said.
“Most agencies recorded modest volume and revenue growth during the period, reflecting improved market penetration and expanded distribution reach. The business continues to face significant price competition from grey imports.”
The improved festive season trading strengthened the group’s liquidity position, with cash and cash equivalents rising to US$7,04 million from US$2,79 million at the start of the period.
This left Axia with US$1,84 to every dollar of short-term debt.
Commitments for capital expenditure of US$4,34 million were made at the end of the period, with financing expected to come from the group’s own resources and existing borrowing facilities.
“The group will remain focused on improving its relevance to the market by offering quality products conveniently at competitive pricing and thus continue to play a role in improving the quality of lives of our customers,” Ngwerume said.
“Our partnerships with retailers, both in the formal and the general trade, continue to strengthen, and this remains critical as we face squeezing margin pressures while we aim at driving up volumes. The group is seeing encouraging traction from our efforts to increase product availability and visibility across all markets.”
Ngwerume said the group’s strategy to widen its product range and increase market share remained on track.
“The expansion of the store network at Transerv and TV Sales & Home continues to contribute positively, with the newer stores maturing well,” he said.
Transerv, Axia’s auto parts retailer, recorded an 8% increase in revenue during the review period on the back of a 16% rise in volumes to 1 825 789 units, supported by the opening of four new shops.
“In the coming months, we will focus on maximising returns from these investments while directing free cash flow towards expanding the debtors’ books in both businesses to support volume growth,” Ngwerume said.
In manufacturing, the group will focus on improving productivity and cost management.
“It is anticipated that synergistic benefits will be realised from the relocation of the Lounge furniture manufacturing operations next to the bedding manufacturing operations,” Ngwerume said.
Stronger cash generation helped grow Axia’s total assets to US$131,84 million during the review period from US$127,57 million at the start of the half year.
