Vision Investments Limited (VIL) announced a total operating income of $200 million for its financial year ending March 31, 2024. The company, which oversees well-known outlets such as Courts Fiji and Vision Motors, is publicly traded on the South Pacific Stock Exchange (SPX) and recently submitted its annual report.
In his report, CEO Sanjesh Prasad described the achievement of $200 million in operating income as historic, marking a 7.4 percent increase from the previous financial year. He noted that this strong revenue growth resulted in a profit before tax of $23 million, up 2.2 percent from $22.5 million in 2023.
Despite a higher provision write-back of $926,000 for hire purchase debtors last year, profit before tax exceeded that of the previous year. The corporate tax rate for SPX-listed companies returned to 25 percent, leading to an increase in income tax expense for VIL to $4.7 million during the 2024 financial year, a significant rise from $1 million under the previous 10 percent tax rate in 2023.
The issue of increased Fijian migration has raised concerns about slowing consumption among retailers, a trend that VIL is monitoring closely. Chairman Dilip Khatri acknowledged that while the group’s retail operations continued to progress, they faced challenges from inflation and significant depopulation caused by large-scale migration.
The Reserve Bank of Fiji reported in June 2024 that approximately 15 percent of the total labor force, comprising skilled and semi-skilled workers, had migrated abroad. Khatri stated that the company is closely assessing the implications of this migration on the economy and consumer spending and is prepared to implement necessary measures to sustain profitability.
Additionally, VIL has acquired a property in Laqere, near Suva, and is in the planning stages to develop a centralized warehouse, Courts Service, and Vision Motor facility. This development aims to reduce costs, enhance efficiencies, and create new revenue streams for the group.