Vision Investments Limited (VIL) reported a total operating income of $200million for its 2024 financial year ended March 31, 2024.
VIL, parent company of a portfolio of popular outlets such as Courts Fiji and Vision Motors, is listed on the South Pacific Stock Exchange (SPX) and filed its 2024 Annual Report last week.
In his review, chief executive officer Sanjesh Prasad said the group’s milestone achievement of $200m operating income this year was historic and represented a 7.4 per cent increase from the group’s 2023 financial year.
“On the back of this robust revenue growth, the group posted a substantial profit before tax of $23.0million (2023: $22.5m), up 2.2 per cent from last year,” Mr Prasad stated.
Profit before tax still performed better than the previous year despite the higher hire purchase debtors’ provision write-back of $926,000 last year.
Corporate tax rate had returned to 25 per cent for SPX-listed companies, who briefly enjoyed lower tax rates under the previous government and for VIL, income tax expense due to this policy measure by the Coalition Government led to an increase in income tax expense of $4.7m during its 2024 financial year compared to $1m based on a 10 per cent tax rate in 2023.
With increased migration of Fijians overseas becoming a national issue of concern, for retailers, it manifested in slowing consumption, which the group is keeping well within its radar.
VIL chairman Dilip Khatri in his message to shareholders said while the retail operations of the group maintained its momentum, it was doing so against the backdrop of moderation in consumer spending “due to inflationary pressures and more significantly, the depopulation of the country due to large scale migration.”
“The RBF in a report dated 12th June 2024, reported that skilled and semi-skilled workers estimated at 15 per cent of the total labour force had migrated abroad. We are watching very closely the impact of this on the economy and on consumer spending and remain vigilant to take the necessary counter measures to maintain the profitability of the group.”
Mr Khatri said VIL has secured a property in Laqere outside Suva and planning is in progress to develop a centralised warehouse, Courts Service and a Vision Motor facility in staged phases which will reduce costs, increase efficiencies and create new revenue streams for the group.