Zimbabwe Stock Exchange (ZSE) listed Axia Corporation Limited (AXIA.ZW) is now the majority shareholder in Restapedic, a local bed manufacturing company in Zimbabwe.
Through its TV Sales & Home subsidiary, AXIA acquired 11% more shares to its original 49%, bringing the total holding in the company to 60%.
Commenting about this transaction, the company was buoyant, saying that it helped fund a new state-of-the-art factory.
“The business acquired an additional 11% in Restapedic, a local bed manufacturer, to increase its shareholding to 60% effective 1 July 2021.” The company announced in its trading update for financial year 2022 first quarter ended 30 September 2021.
“This has enabled TV Sales & Home to fund the construction of a new multi-million US Dollar state of the art factory, which commenced in August 2021. This new factory will result in the business growing its production to meet increasing local demand and service export markets,” added the statement.
Volumes for TV Sales & Home grew by 36% compared to the same period last year. This was on the back of improved product supply, competitive pricing, as well as exciting promotions that the company offered.
AXIA owns other subsidiaries operating in Zimbabwe and the region. These include Transerv, DGA Zimbabwe, and DGA Region (Zambia and Malawi).
Malawi, the company says, has now become a significant contributor to positive regional performance. Q1, 2022, volumes were up 58% in that country compared to the previous comparable period. This was on the back of newly acquired distribution agencies. These are Unilever, BIC, and Clove.
In Zambia, volumes decreased by 29% owing to currency movements in that country. After elections, the sentiment was strong enough to strengthen the Zambian currency against supplier countries such as South Africa (ZAR). This led to downward pressure on the local prices, leading to a shrink in demand.