Axia Corporation reports $16.8 mn FY18 net earnings

Axia Corporation reported net earnings of $16.6 mn in the full year to June 2018 (FY18) from $13.8 mn in FY17.
Basic earnings per share EPS jumped 47% at 2.02 US cents from 1.37 US cent in FY17.
Its top line rose 31% in the period under review from $211 mn to $275.9 mn.
The group said net borrowings had increased owing to the need to support strategic working capital investments.
Its TV Sales & Home achieved a 19% growth in units sold over the prior year driven by both cash and lay byes.
The company’s debtor’s book decreased by 11% in the period as credit sales slowed in the first half of the financial year, the company in statement attached to its results Tuesday.
Credit sales grew in the last quarter of the year thanks to promotions and credit deals.
Management said the quality of the book was good.
Its distribution business fared decently despite local supply stock outs, import permits, settling foreign suppliers as well as once off charges.
DGA Zimbabwe recorded a 17% revenue growth over the comparative period owing to the acquisition of subsidiary companies and Baobab and growth of existing business.
Operating profit was 25% up from prior year.
The company had book value of 465.6 mn in FY18 and declared a dividend per share 0.32 US cents.
As at August 31, Axia was trading at premium to its book value of 3.76 and a P/E of 14.84. Essentially, a P/E of 14.84 means an investor had to pay $14.84 for a dollar in Axia earnings.
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