ZIMBABWE’S leading furniture and electronic appliance retailer, TV Sales & Home (TVSH) registered a 6% growth in revenue for the half-year period ended December 31, 2023 compared to the prior period on the back of 11% volume growth.
“Most operating costs incurred during the period were indexed to the United States dollar resulting in significant growth against the prior year. Some measures are being taken to curb rampant increases in overheads,” the parent company Axia Corporation Group said in a statement accompanying the financial results.
“The first TVSH outdoor world garden function store opened its doors to the public in November 2023. The response from customers has been positive. However, a lot of work needs to be done to optimise the product range in this new store concept.”
Volumes for the second quarter at Restapedic improved by 58%, resulting in the quarterly turnover growth of 30%.
Year-to-date volumes and turnover increased by 57% and 32% respectively.
Growth in margins of 21% was below turnover growth as the business reduced its pricing to remain competitive.
Axia said Legend Lounge’s revenue grew by 16% on the back of volume growth of 34% against the comparative period.
It said a management restructuring that was implemented in the last financial year resulted in better control of operating costs.
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The unit is now producing above the minimum required lounge suites per month.
The new cut and sew and fabric lines acquired are expected to be delivered towards the end of the 2024 financial year, it said.
The group will see improved capacity utilisation with limited requirements for further capital expenditure in the future.
“Management is continuously focusing on volume growth and improving gross margin dollars,” it said.
Transerv, another Axia business unit, recorded an 8% increase in revenue on the comparative period on the back of an 8% increase in volumes.
The increase in revenue is as a result of the rapid expansion in the company’s retail footprint. Eight new stores in Harare were opened during the period under review.
During the period, the business introduced solar products and the sales statistics are encouraging, the statement said.
