INDIGENOUS-owned investment company Fijian Holdings Limited (FHL) Group has reported a drop in its profit before tax despite posting revenue growth for the six months ended December 31 last year – and short of its expectation.
FHL Group recorded a 5.8 percent revenue growth to $210.6million but its unaudited profit before tax fell to $37.3m from $39.3m in the comparative period.
The profit reduction was a direct result of accelerating costs of doing business and dampening demand.
As of December 31, 2024, the Group’s net assets closed at $383m, accounting for an increase of $20.5m compared to June 30 last year.
“The half year results showed subdued performances from our key subsidiaries in the retail and financial services sector, which offset the continued growth of our tourism industry businesses, cement manufacturing business and fund management entity,” the company said as it released its consolidated group results.
“Of concern were the lower-than-anticipated performances from the other investments in the construction and media sectors.”
Moving forward, the company said the Group would prioritise enhancing efficiency and implementing cost-cutting measures while continuing with its automation and digital initiatives.
Meanwhile, it said further headwinds from uncertainties surrounding world trade, fluctuations in commodity prices and inflation would affect the Group’s performance for the second half of the financial year.
It added that while there were encouraging signs of increased investment spending, “we anticipate the growth in the tourism sector may abate”.
“Additionally, if the cost of goods rise, we foresee a weakening in consumption spending, which could impact several of our businesses with the Group.”
While the performance for the six months ended December 31 fell short of the same period last year, the company said it would try to remain on budget for the Group’s results for the remainder of the financial year.
The Group now moves into the second half of its fiscal year with the focus on ‘Growing into new Frontiers – in Pursuit of our Purpose’.