Investment conglomerate Fijian Holdings Ltd (FHL) has reported a group net profit before tax of $79.14 million for the financial year ending June 30, 2024. This marks an 11 percent increase from the previous year’s profit of $63.22 million. The growth is largely credited to strong performance across key subsidiaries within the group’s diverse portfolio of both listed and unlisted blue-chip companies.
Significantly contributing to this success were South Sea Cruises, RB Patel, and Merchant Finance. South Sea Cruises, in particular, saw impressive results driven by an expanding tourism sector and record visitor arrivals, as stated by FHL in an announcement made at the South Pacific Stock Exchange (SPX) on Friday.
The finance and retail segments also performed well, achieving positive results despite facing challenges such as declining consumer spending, inflation, and labor disruptions. However, management emphasized the need for caution in light of global political developments.
The board remains vigilant, closely watching global growth indicators, inflation rates, geopolitical tensions, and cyber security concerns. They also expressed caution regarding high-interest rates if inflation is not effectively managed.
For FHL as a holding company, there was a net profit before tax of $16.94 million, up from $13.02 million in the prior year. This improved performance was fueled by increased dividends from FHL Retailing, South Sea Cruises, and Merchant Finance.
FHL Group chairman Rokoseru Nabalarua highlighted that the financial results reaffirm the company’s strategic focus and priorities. He noted that their ongoing success reflects their commitment and the diligence of their teams. As FHL looks for new growth opportunities, Nabalarua stressed the importance of navigating the changing economic landscape with caution and insight.
The rise in the corporate income tax rate for SPX-listed companies notably affected returns from FHL’s investee companies, contributing to an increase of just $2.42 million in the group’s consolidated net profit after tax compared to the prior year.
As of June 30, 2024, FHL’s net assets total $362.79 million, up from $323.30 million the year before, indicating strong performance in the group’s portfolio. FHL’s shares are listed on the SPX restricted board and are exclusively available to itaukei individuals who are registered in the Vola-Ni-Kawa-Bula or ethnic registry. At the time of reporting, FHL shares closed at 98 cents each.