Vision Investments Ltd has informed its shareholders that the increase in oil prices, commodity prices, freight and logistics costs, were significantly pushing up cost of goods and the retail prices on the shop floor.
The group released its 2022 annual report in which its board chairman Dilip Khatri said it was resulting in inflationary pressures, which may dampen consumer demand and spending.
Mr Khatri said loss of skilled workers because of seasonal worker programs and short-term work contracts to neighbouring developed countries, were causing labour shortages and pushing up remuneration rates taken to retain skilled workers.
According to Mr Khatri payroll costs were also being pushed up by the recently introduced National Minimum Wage Guidelines – although much needed.
“We are very mindful of these emerging factors and are putting in place measures to manage elements that are within our control to protect Group performance. Nonetheless the situation demands stringent vigilance,” he said.
VIL recorded a profit of $14.1 million in their 2022 financial year compared with $8.1m in the previous year.
The group recorded total revenue of $137.0m in 2022 compared with $139.5m during the same period in 2021 with the increase in operating profits largely because of measures taken to counter the impact of the pandemic disruptions.
Mr Khatri said the group was able to achieve revenues similar to the previous year and encouraging profits, despite the significant setbacks earlier in the financial year because of COVID related trading restrictions and the gloomy trading environment.
