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Axia Corporation Limited 8 Cambridge Avenue Newlands Harare
Axia Presentation
Contents
Introduction J.K
Financial Review R.R
Conclusion & Outlook J.K
Axia Corporation Limited 8 Cambridge Avenue Newlands Harare
Introduction
Key Highlights of FY2019TV Sales & Home
Opened 4 new stores (Orr Street, Banket, Masvingo & Gwanda)
Closed 1 store (Groombridge)
Acquired 11 additional delivery vehicles
Acquired 49% shares in Restapedic
Established Legend Lounge and has 70% shareholding
Planning to increase store network to 50 by end of FY2020
* Information as at 30th June 2019
Key Highlights of FY2019Transerv
Maintained same footprints of 43 retail branches &
fitment centres as per FY2018
Re – invigorating their brand
Celebrated their 10 year anniversary & looking forward to an
increased network
Key Highlights of FY2019Distribution Group Africa
Significant growth from local agencies such as ProGroup
Received 2 awards in Malawi & 4 in Zimbabwe for:
Distributor of the year (Colgate Palmolive) - Malawi
Best open market execution (Colgate Palmolive) - Malawi
Colgate Redstorm (Colgate Palmolive) - Zimbabwe
Operation Smile (Colgate Palmolive) - Zimbabwe
Fastest growing distributor in Africa (Pepsi) - Zimbabwe
Most improved supplier (TM Pick N Pay) - Zimbabwe
* Information as at 30th June 2019
Macro Economic Environment
Shortage of foreign currency
Challenges in acquiring some import licenses
Constrained consumer disposable income
Increasing price sensitivity by customers
Loss of value of assets - inflation
Axia Corporation Limited 8 Cambridge Avenue Newlands Harare
Financial Review
Income Statement
FY2019 FY2018
ACTUAL ACTUAL
ZWL '000 ZWL '000
REVENUE 557,414 275,925 102%
GROSS MARGIN 156,200 66,472 135%
TOTAL OVERHEADS (83,522) (40,664) 105%
EBITDA 72,678 25,808 182%
FINANCIAL INCOME 12,089 1,274
IMPAIRMENT LOSS (35) (419)
DEPRECIATION & AMORTISATION (2,287) (1,913)
FAIR VALUE ADJUSTMENTS ON LISTED EQUITIES 682 68
PBIT 83,128 24,818 235%
% Chg
Actual
vs. FY2018
Income Statement (continued)
FY2019 FY2018
ACTUAL ACTUAL
ZWL '000 ZWL '000
PBIT 83,128 24,818 235%
NET INTEREST EXPENSE (1,917) (1,282)
EQUITY ACCOUNTED EARNINGS 4,526 799
PBT 85,738 24,335 252%
TAX (22,657) (7,452)
PAT 63,081 16,883 274%
NON -CONTROLLING INTERESTS (24,807) (5,930)
ATTRIBUTABLE PROFIT (BASIC) 38,274 10,953 249%
ATTRIBUTABLE PROFIT (HEADLINE) 38,274 6,972 449%
HEADLINE EARNINGS PER SHARE (CENTS) 7.07 2.02 250%
TOTAL DIVIDEND PER SHARE (CENTS) 2.35 0.72 226%
% Chg
Actual
vs. FY2018
Income Statement Contributors
Revenue Gross Margin EBITDA PBT
TV Sales & Home 88% 98% 91% 179%
Transerv 37% 134% 240% 285%
Distribution Group Africa Zimbabwe 114% 178% 353% 502%
Distribution Group Africa Region 64% 79% -90% 56%
Statement of Financial Position – Assets Breakdown
30 JUNE 2019 30 JUNE 2018
audited audited
ZWL'000 ZWL'000
ASSETS
Non-current assets
PPE 16,640 9,085
intangible assets - 35
investments in associates 11,571 5,618
deferred tax assets 8,955 2,023
37,166 16,761 122%
Current assets
financial assets 2,005 1,690
inventories 111,845 47,750 134%
trade and other receivables 141,909 54,088 162%
trade receivables 93,179 29,032
other receivables 48,730 25,056
cash and cash equivalents 29,934 7,297 310%
285,693 110,825 158%
Total Assets 322,859 127,586 153%
Statement of Financial Position – Equity & Liabilities
30 JUNE 2019 30 JUNE 2018
audited audited
ZWL ZWL
Capital and reserves
ordinary share capital 54 54
share based payment 457 162
non-distributable reserves 8,122 (2,682)
distributable reserves 76,165 43,350
Minority interests 54,308 24,774
Total shareholders' equity 139,106 65,657 112%
Non-current liabilities
provision for deferred taxation 6,317 1,756 260%
Current liabilities
interest bearing borrowings 44,786 26,055 72%
trade and other payables 122,075 32,361 277%
trade payables 94,114 20,363
other payables 27,961 11,999
provisions and other liabilities 2,808 944
current tax liabilities 7,767 812
177,436 60,172 195%
Total Liabilities 183,753 61,929 197%
Total Equity and Liabilities 322,859 127,586 153%
Net Gearing 8.08% 20.45%
Foreign Inventory & Creditors
INVENTORY
Foreign Local
Obsolence
Provision
30 June 2019
Total
30 June 2019
Foreign
30 June 2018
Foreign
ZWL '000 ZWL '000 ZWL '000 ZWL '000 % %
TV Sales & Home 16,418 12,042 (177) 28,283 58% 53%
Transerv 20,093 1,052 (1,212) 19,933 95% 95%
DGA Zim 54,276 5,915 (3,056) 57,135 90% 78%
DGA Region 20,988 6,067 (628) 26,427 78% 70%
Less: Transerv (20,093) (1,052) 1,212 (19,933)
91,682 24,024 (3,861) 111,845 79% 69%
TRADE & OTHER PAYBLES Foreign Local
30 June 2019
Total
30 June 2019
Foreign
30 June 2018
Foreign
ZWL '000 ZWL '000 ZWL '000 % %
TV Sales & Home 23 13,918 13,941 0% 3%
Transerv 527 2,013 2,540 21% -
DGA Zim 39,099 46,374 85,473 46% 36%
DGA Region 11,814 24,377 36,191 33% 51%
Less: Transerv (527) (2,013) (2,540) 21% -
Axia Corp - 1,232 1,232 - -
Axia Ops - 5,601 5,601 - -
Excalibur & ICRML - 615 615 - -
Adjustments - Intercompany - (20,978) (20,978) - -
50,936 71,139 122,075 42% 36%
Foreign creditors as a percentage of foreign inventory 56% (30 June 2019) 35% (30 June 2018)
Statement of Cashflows
CASHFLOW STATEMENT
30 JUNE 2019 30 JUNE 2018
audited audited
ZWL '000 ZWL '000
Cash generated from operating activities 48,602 10,136
net interest paid (1,917) (1,282)
tax paid (17,168) (7,159)
Net cash generated from operating activities 29,517 1,694
Investing activities (7,603) (4,511)
Net cash inflow/(outflow) before financing activities 21,914 (2,817)
Financing activities 723 (625)
Net increase /(decrease) in cash and cash equivalents 22,637 (3,441)
Cash and cash equivalents at the beginning of the year 7,297 10,738
Cash and cash equivalents at the end of the year 29,934 7,297
CONCLUSION
John Koumides, Chief Executive Officer
T: +263 (24) 2776 250E: [email protected]
www.axiacorpltd.com
Ray Rambanapasi, Finance Director
T: +263 (24) 2776 998 E: [email protected]
