Fijian Holdings Ltd (FHL), an investment conglomerate, reported a group net profit before tax of $79.14 million for the financial year ending June 30, 2024. This represents an 11 percent increase from the $63.22 million recorded for the same period last year. The growth was attributed to solid performances across key subsidiaries within the company’s diverse portfolio of both listed and unlisted blue chip firms.
Notable contributors to this success included South Sea Cruises, RB Patel, and Merchant Finance. South Sea Cruises particularly benefitted from the recovery in the tourism industry and record visitor arrivals, according to FHL’s announcement made at the South Pacific Stock Exchange (SPX) on Friday. The finance and retail sectors also performed well, generating positive results despite facing challenges like reduced consumer spending, inflation, and labor disruptions.
However, management expressed caution regarding global political changes. They emphasized the importance of monitoring factors such as global economic growth, inflation, geopolitical tensions, and cybersecurity concerns in the current climate. They also noted the potential impact of high interest rates if inflation remains uncontrolled.
FHL itself reported a net profit before tax of $16.94 million, an increase from $13.02 million in the prior year, largely driven by higher dividends from FHL Retailing, South Sea Cruises, and Merchant Finance.
Chairman Rokoseru Nabalarua stated that the financial results reflect FHL’s strategic focus and commitment to its objectives. He remarked on the importance of navigating the changing economic landscape wisely while seeking new growth opportunities.
The rise in corporate income tax rates applicable to SPX-listed companies affected returns from FHL’s investee companies, resulting in a modest increase of only $2.42 million in the group’s consolidated net profit after tax compared to last year.
As of June 30, 2024, FHL’s net assets increased to $362.79 million, up from $323.30 million the previous year, showcasing the growth trajectory of the group’s portfolio.
FHL shares are listed on the SPX restricted board and are available exclusively to itaukei individuals whose names are registered in the Vola-Ni-Kawa-Bula or ethnic registry. The shares closed at 98 cents each at the time of this report.