eBusiness Weekly
Enact Mapakame
Specialty retail and distribution firm, Axia Corporation’s revenue for the full year to June 30, 2023 declined marginally to US$203,8 million compared to US$204 million recorded in the previous comparable year.
Despite the revenue decline, the group realized growth in gross margin which increased by 2 percent on the prior year as management made efforts to contain operating expenditure although cost push pressures were evident in fuel costs and human capital costs resulting in increases over the comparative period.
According to a performance update for the period under review, Axia posted an operating profit of US$20,84 million, representing a 16 percent decline to the comparative period.
The financial loss line is predominantly comprised of foreign currency exchange losses resulting from the depreciation of monetary assets denominated in local currency as the local currency significantly devalued in the last quarter of the financial year.
Net interest expenses amounted to US$3,22 million, with 48 percent of this incurred in the first quarter of the financial year following the sharp increase in interest rates on local currency-denominated borrowings.
Profit before tax came in at US$11,19 million, which was 32 percent below the prior year. Basic earnings per share and headline earnings per share both declined by 34 percent.
The group’s financial position remained solid. Borrowings grew by US$3,19 million. According to the performance update, the group generated cash of US$15,105 million from operations which enabled it to incur capital expenditure for the year of US$6,6 million while its free cash generation will enable it to continue executing expansion opportunities.
