VISION Investments Ltd (VIL), the parent organization of Courts Fiji Ltd and Sports World, has reported a remarkable turnover of $101.94 million for the six months ending September 30, 2024, reflecting an 11 percent increase compared to the same timeframe last year. Despite this positive growth in revenue, the group faced a 13 percent decline in pre-tax profits to $9.55 million, primarily attributed to rising operating costs driven by inflation, particularly in payroll and rent.
The company’s announcement highlights that recent tax policy changes introduced in the last National Budget also contributed to a lower effective tax rate this year compared to the previous one, as adjustments were made to last year’s tax expense. Additionally, the retail sector’s performance was hindered by soft consumer demand, influenced by inflation, cautious spending behaviors, and the effects of mass migration reducing the labor force and consumer base.
Amid these challenges, VIL found resilience through its Vision Motors automotive division, which has experienced strong sales by implementing innovative strategies to tap into new market opportunities. This division has played a crucial role in bolstering the overall growth of the group.
Looking ahead, VIL is focused on maintaining robust liquidity to support planned investments in significant capital projects aimed at long-term growth. The company has recently acquired strategically located vacant freehold land in Laqere, adjacent to an existing property, intended for the development of a centralized warehouse and head office facilities, with planning already in progress. Further information about the project will be released in due course.
In a positive development for shareholders, VIL announced a first interim dividend of three cents per ordinary share, totaling over $3.11 million, to be paid from profits for the financial year ending March 31, 2025. This dividend will be marked ex-benefit on December 13 and is set to be distributed on December 30, 2024. At the time of this announcement, VIL shares were last traded at $4 on the South Pacific Stock Exchange (SPX).
Overall, while VIL deals with rising operational costs and market challenges, its strategic investments and strong sales in key divisions reflect a commitment to future growth and stability, which bodes well for the company and its stakeholders.
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