VISION Investments Ltd (VIL), the parent company of Courts Fiji Ltd, Sports World, and the Vision group of companies, recently reported a notable turnover of $101.94 million for the six-month period ending September 30, 2024. This marks an impressive 11 percent increase compared to the same timeframe last year. However, the company faced higher operational costs driven by increasing payroll and rent expenses due to inflation, resulting in a 13 percent decrease in pre-tax profits, which totaled $9.55 million.
In its announcement to the South Pacific Stock Exchange (SPX), VIL noted that recent tax policy changes introduced in the last National Budget led to a substantial credit adjustment affecting the tax expense from the previous year, resulting in a much lower effective tax rate for that period.
The first half of the financial year was marked by subdued consumer demand in the retail sector, largely attributed to inflationary pressures, cautious spending behavior, and the fallout from mass migration, which has affected both the labor force and the customer base. Nevertheless, one bright spot for VIL was the strong performance of its Vision Motors automotive division. The company effectively leveraged innovative strategies to tap into new market opportunities, significantly bolstering the group’s overall growth during this challenging period.
Looking ahead, VIL is focused on maintaining solid liquidity within its balance sheet to support strategic investments in significant capital projects aimed at long-term growth. As part of these initiatives, the group has recently purchased a strategically located plot of vacant freehold land in Laqere, adjacent to its existing property. This new acquisition is intended for the development of centralized warehouse and head office facilities, with planning processes currently underway. Further details and updates regarding project commencement will be communicated in due course.
Additionally, VIL announced a first interim dividend of three cents per ordinary share, translating to a total payout of over $3.11 million from profits for the financial year ending March 31, 2025. Shareholders can expect this dividend to be marked ex-benefit on December 13 and paid out on December 30, 2024. According to reports, VIL shares traded at $4 during the latest SPX session.
Despite the challenges posed by economic pressures, VIL demonstrates resilience and a commitment to growth, evident in its strategic investments and positive operational developments. The outlook remains hopeful as the company navigates through transitional phases while continuing to prioritize its long-term vision.
In summary, VIL showcases a robust turnover yet faces challenges like rising operational costs and changing consumer dynamics. However, its strategic acquisitions and strong sales in automotive indicate a positive trajectory for future growth.
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