VISION Investments Ltd (VIL), parent company of Courts Fiji Ltd, Sports World and Vision group of companies this week announced a record turnover of $101.94million for the six months ending September 30, 2024, an 11 percent growth compared to the same period last year. However, higher operating costs, mainly payroll and rent costs due to rising inflation and the cost of doing business, led to a 13 percent drop in the Group’s pre-tax profits of $9.55million.
“Additionally, the tax policy changes introduced in the last National Budget led to a corresponding credit adjustment to last year’s tax expense, resulting in a significantly lower effective tax rate for the previous year compared to the current period,” VIL stated in its announcement at the South Pacific Stock Exchange (SPX).
“The first half of the financial year experienced soft consumer demand in the retail sector due to inflationary pressures, cautious consumer spending patterns, and the effects of mass migration, which impacted both the labour force and consumer base.
“Despite these challenges, the group’s performance was underpinned by strong sales in Vision Motors automotive division, driven by leveraging innovative strategies to develop new market opportunities. “The division’s performance has significantly contributed to the group’s overall growth during the period.”
The group is maintaining ample liquidity in its balance sheet to support planned investments in major capital projects for long term growth.
“As part of these initiatives, during the current financial year, the group has acquired a strategically located vacant freehold land in Laqere, adjacent to its existing property,” it stated.
“This acquisition is earmarked for the development of a centralised warehouse and head office facilities, with planning currently underway.
“Further details, including the commencement of project works, will be announced in due course.”
VIL declared a first interim dividend of three cents per ordinary share, amounting to a total dividend payment of over $3. 11m out of profits for the financial year ending 31st March 2025.
Dividend will be marked ex-benefit on December 13 and paid out to shareholders on December 30, 2024.
VIL last traded at $4 a share on SPX when this edition went to press.
