VISION Investments Ltd (VIL), the parent company of Courts Fiji Ltd, Sports World, and the Vision group, has reported a remarkable turnover of $101.94 million for the six months ending September 30, 2024. This reflects an 11 percent increase compared to the same period last year. Despite this positive revenue growth, the company faced challenges with a 13 percent decline in pre-tax profits, which dropped to $9.55 million. This downturn can be attributed to rising operational expenses, particularly payroll and rent, exacerbated by ongoing inflation and increased business costs.
In its announcement at the South Pacific Stock Exchange (SPX), VIL highlighted that recent tax policy changes introduced in the last National Budget contributed to a lower effective tax rate this year when compared to the previous one due to an adjustment in last year’s tax expense. The retail sector saw soft consumer demand during the first half of the financial year, influenced by inflation, cautious spending habits, and the effects of mass migration that have impacted both the labor force and consumer base.
Nevertheless, the group’s performance was bolstered by strong sales from its Vision Motors automotive division, which successfully harnessed innovative approaches to tap into new market opportunities. This division played a crucial role in driving the overall growth of the company.
To support future projects for sustainable growth, VIL is ensuring significant liquidity on its balance sheet. Currently, the group has acquired strategically located freehold land in Laqere, adjacent to its existing property, slated for the development of centralized warehouse and head office facilities, with planning in progress. More information regarding the commencement of these projects will be shared in due course.
Furthermore, VIL announced a first interim dividend of three cents per ordinary share, amounting to over $3.11 million, based on its profits for the financial year ending March 31, 2025. The dividend will be marked ex-benefit on December 13 and disbursed to shareholders on December 30, 2024. As of the latest update, VIL shares were trading at $4 each on the SPX.
In summary, while VIL faced identifiable challenges such as rising operational costs and sluggish consumer demand, its proactive strategies in sales and investment signal a resilient outlook for the company’s future growth. The acquisition of new land for expansion and maintaining investor returns through dividends are positive indicators of VIL’s commitment to long-term success.
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