VISION Investments Ltd (VIL), the parent company of Courts Fiji Ltd, Sports World, and the Vision group of companies, recently reported a remarkable turnover of $101.94 million for the six months ending September 30, 2024. This represents an 11 percent increase from the same period last year. Despite this growth, the company faced challenges due to rising operating costs, particularly in payroll and rent attributed to inflation and the broader cost of doing business, which led to a 13 percent decline in pre-tax profits to $9.55 million.
According to VIL, recent tax policy changes from the last National Budget caused a significant credit adjustment to the previous year’s tax expense, resulting in a lower effective tax rate last year compared to the current period. The company noted that the retail sector experienced subdued consumer demand influenced by inflationary pressures, cautious spending behaviors, and the effects of mass migration impacting both the workforce and customer base.
Nevertheless, VIL’s performance saw strong contributions from the Vision Motors automotive division, which capitalized on innovative strategies to explore new market opportunities. This success has played a crucial role in the group’s overall growth.
To support future growth, VIL is maintaining a solid liquidity position and has acquired strategically located vacant freehold land in Laqere, adjacent to its current property. Plans are underway for the development of centralized warehouse and head office facilities, with further details about the project to be released in due course.
Additionally, VIL declared a first interim dividend of three cents per ordinary share, amounting to more than $3.11 million out of profits for the financial year ending March 31, 2025. This dividend is set to be marked ex-benefit on December 13 and paid to shareholders on December 30, 2024. As of the latest trading, VIL shares were priced at $4 each on the South Pacific Stock Exchange.
Rising inflation poses challenges to many businesses, but VIL’s ability to achieve turnover growth and take proactive steps for long-term investment is a testament to its resilience and vision for future success.
In summary, while VIL has navigated a tough economic landscape marked by higher costs and changing tax conditions, its strategic initiatives and solid performance in key divisions position the company well for continued growth and shareholder returns.
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