DESPITE challenges posed by a pending legal dispute relating to intellectual property rights and online marketing/sales and other factors, Pacific Green Industries (PGI) recorded a net profit after income tax of $331,758 for the year ended December 31, 2024.
The manufacturer and distributor of high-end coconut palmwood furniture had recorded $400,556 in NPAT for the 2023 financial year.
The company also maintained its sales level as last year despite the drop in export sales by $0.2m, the company’s 2024 annual report stated.
PGI chairman Ravin Chandra attributed this performance to the ongoing dispute on its online marketing platform, which they were actively addressing as a priority; and global trade disruptions and shifting marketing conditions.
“The company has a strong cash flow position at year end and propose a dividend of 3 cents per share,” Mr Chandra said in the annual report released by the South Pacific Stock Exchange (SPX).
“The company has seen a solid year-over-year increase in total assets and equity, with total assets rising by 8.1 per cent, driven primarily by increased cash reserves.”
PGI’s net assets grew by 4.95 per cent reflecting positive retained earnings, the annual report noted.
Mr Chandra said the company’s balance sheet remained robust and demonstrated financial stability in a challenging economic climate.
He urged the Government to strengthen support for locally made furniture by prioritising domestic manufacturers in procurement policies.
He said that would sustain their growth and competitiveness.
“Supporting local businesses will not only bolster the economy but also foster employment and sustainable development.”
He noted key challenges that included: intense competition from imported furniture; a shrinking customer base due to migration trends; and the need for institutional shareholders to consider
Pacific Green furniture for their properties, recognising its superior quality and value.
“The global trade landscape is undergoing significant changes, particularly with new tariffs imposed by the United States.
“These shifts could present both challenges and opportunities for our industry.
“Rising input costs, a shrinking customer base, and declining construction activity further contribute to the uncertainties of FY2025.”
Mr Chandra said providing earnings guidance remained challenging, attributed to inflationary pressures, geopolitical risks and supply chain uncertainties.
However, he said they remained committed to navigating those challenges with strategic planning and efficiency.
“Our focus will continue to be on quality, sustainability and advocating for policies that support local industry.”