VISION Investments Ltd (VIL), the parent company of Courts Fiji Ltd and Sports World, reported an impressive turnover of $101.94 million for the six-month period ending September 30, 2024. This marks an 11 percent increase compared to the same timeframe last year. However, the company faced a 13 percent decline in pre-tax profits, which totaled $9.55 million. This drop was influenced by rising operational costs, primarily due to inflation affecting payroll and rent, as well as the overall cost of doing business.
In its announcement made at the South Pacific Stock Exchange (SPX), VIL attributed some of the profit decline to tax policy changes from the recent National Budget, which resulted in a significantly lower effective tax rate compared to the previous year.
The first half of the financial year saw soft consumer demand in the retail market, attributed to inflationary pressures and cautious consumer spending habits. The mass migration effects also impacted both the labor force and the consumer market. Despite these challenges, the company’s automotive division, Vision Motors, thrived through innovative strategies, contributing significantly to the group’s overall growth during the period.
VIL has also ensured strong liquidity in its balance sheet, facilitating planned investments in significant capital projects aimed at long-term growth. This includes the acquisition of strategically located freehold land in Laqere, adjacent to its existing property. Development plans for a centralized warehouse and head office facilities are currently underway, with further details to be shared soon.
Additionally, VIL has declared a first interim dividend of three cents per ordinary share, translating to a total payout of over $3.11 million for the financial year ending March 31, 2025. This dividend will be marked ex-benefit on December 13 and distributed to shareholders on December 30, 2024. As of the last trading update, VIL shares were priced at $4 each on the SPX.
In summary, while VIL experienced a dip in profits, their impressive turnover growth and strategic investments point towards resilience and preparation for future growth. Their commitment to adaptability in challenging market conditions, alongside solid financial management, reflects a positive outlook for the company’s future.
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