Supermarket chain RB Patel Group Limited has recorded $7.7million in profit after tax for the 12 months ended June 30, 2023.
For the previous corresponding financial year, the publicly-listed company recorded $10.9m, an increase of 8.6 per cent from the $8.5m profit after tax recorded for the 12 months ended June 30, 2021.
However, RB Patel Group chairperson Yogesh Karan said the profit after tax for this fiscal year was impacted by the increase in the tax rate from 10 per cent to 25 per cent from the next financial year.
He said the total reduction in net profit due to this change was $5.8m.
In its annual report released on the South Pacific Stock Exchange (SPX), Mr Karan highlighted the 17.1 per cent increase in operating profit from $13.4m last year to $15.7m this year.
“Revenue, including other income also increased by 18.5 per cent to $170m from $143m last year, while gross profit increased by 15.1 per cent – an increase to $34.7m from $30.2m last year,” the chairman said.
The group also noted that dividends paid and declared during the year amounted to 4.7 cents per share with a total payout of $7.05m compared to $4.8m paid out in 2022.
“With the final dividend of 5 cents per share declared in August 2023, the total dividends declared from the profits for the year ended June 30, 2023, was $10.5m or 7 cents per share. This is again the highest dividend declared since we were listed in 2001,” Mr Karan said.
While supply chain issues have eased, but with the war in Ukraine and other unforeseen situations continuing to cast a show over global economic recovery, the chairman said the company’s planning and logistics continued to keep its imports within acceptable timelines, as well as minimising cost increases attributed to freight and shortages.
“Our trade partnerships with our major suppliers, both locally and globally, have ensured that we receive priority in our business. Freight and product costs which increased significantly have finally started to show signs of reduction.
“Supply chain challenges will continue in the medium term and will affect both local distribution of overseas-sourced products, as well as our own imported lines. It is, therefore, imperative that we keep abreast of developments and take the necessary actions to mitigate the impact.”
Mr Karan said Fiji’s economic recovery continued to gain momentum, supported by a strong rebound in the tourism industry.
He added demand continued to rise, sustained by higher consumption and investment spending with financial conditions remaining accommodative and supportive of growth.
