VISION Investments Ltd (VIL), the parent company of Courts Fiji Ltd, Sports World, and other affiliated businesses, reported a record turnover of $101.94 million for the six months ending September 30, 2024. This marks an impressive 11 percent increase compared to the previous year. However, the company faced challenges with higher operating costs, particularly due to increased payroll and rent expenses driven by inflation, which led to a 13 percent decline in pre-tax profits, amounting to $9.55 million.
In its statement to the South Pacific Stock Exchange (SPX), VIL noted that changes in tax policy from the last National Budget resulted in a credit adjustment to last year’s tax expense, leading to a lower effective tax rate in the previous year compared to the current period. This adjustment contributed to complex financial outcomes for the company.
The retail sector experienced lowered consumer demand during the first half of the financial year due to inflationary pressures and cautious spending patterns exacerbated by mass migration that affected both the labor market and customer base. In spite of these hurdles, VIL found strength in its Vision Motors automotive division, which benefited from innovative strategies and has become a significant contributor to the group’s growth in this timeframe.
To support its long-term growth strategy, VIL is ensuring robust liquidity within its balance sheet and has announced the acquisition of a strategically located vacant freehold land in Laqere, next to its existing property. This new site is intended for the development of centralized warehouse and head office facilities, with planning already underway, promising future expansion.
Additionally, VIL declared a first interim dividend of three cents per ordinary share, translating to a total dividend payment exceeding $3.11 million for the fiscal year ending March 31, 2025. This dividend will be marked as ex-benefit on December 13 and will be paid to shareholders on December 30, 2024.
Currently, VIL shares are trading at $4 each on the SPX.
Overall, despite facing some challenges, VIL’s solid turnover growth and strategic investments for future development highlight its resilience and potential for sustainable success. The planned expansion and strong initiatives in the automotive division could pave the way for promising opportunities in the coming years.
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