Vision Investments Limited (VIL) announced an operating income of $200 million for its financial year ending March 31, 2024. The company, which oversees well-known brands such as Courts Fiji and Vision Motors, is listed on the South Pacific Stock Exchange (SPX) and submitted its 2024 Annual Report last week.
Chief Executive Officer Sanjesh Prasad highlighted the significance of achieving $200 million in operating income, marking a historic 7.4 percent increase compared to the previous financial year. He stated, “In light of this strong revenue growth, the group recorded a profit before tax of $23 million, an increase of 2.2 percent from last year.”
Despite a higher provision write-back of $926,000 for hire purchase debtors last year, profit before tax showed favorable results compared to the previous year. The corporate tax rate for SPX-listed companies reverted to 25 percent, impacting VIL’s income tax expense. This resulted in an increase in tax outlay to $4.7 million in 2024, up from $1 million based on a 10 percent tax rate in 2023.
With the increasing migration of Fijians abroad becoming a pressing issue, the retail sector is experiencing a slowdown in consumption, which the group is proactively monitoring. Chairman Dilip Khatri noted that while retail operations maintained their performance, they faced challenges from reduced consumer spending attributed to inflation and significant population decline due to migration.
A report from the Reserve Bank of Fiji (RBF) indicated that an estimated 15 percent of the labor force had emigrated, a situation the group is closely observing for its economic impact. Khatri emphasized the importance of remaining vigilant to uphold the group’s profitability despite these challenges.
Furthermore, VIL has secured a property in Laqere, near Suva, and is in the planning stages to develop a centralized warehouse, Courts Service, and a Vision Motor facility. This initiative is aimed at reducing costs, enhancing efficiency, and creating new revenue streams for the company.