The RB Patel Group (RBG) has recorded an increase in its profit from operations for the year from $11.9 million to $12.3 million despite unprecedented challenges.
This, was according to the chairman Yogesh Karan in the 2021 Annual Report for the financial year ending June 30, 2021.
“The company’s profit from operations increased by almost 4 per cent as compared to the same period last year i.e., from $11.9 to $12.3 million,” he said.
“Revenue, including other income however decreased to $135 from $140 million while gross profit increased by 1.2 per cent which is an increase to $27.6 from $27.2 million last year.
“Net cash, generated from operations, was maintained at $14 million, same as last year.
“A result that is can be considered impressive given the current environment.”
Mr Karan said the decrease in net profit before and after tax was because of the decrease in rental revenues of $825,000 and the impairment of related party advance of $1,723,691.
He said similar to last year’s assessment the board was of the opinion, considering the economic circumstances, that there were no change in the value of investment properties.
“From the lockdowns, as a result of the second wave of the pandemic, in April, 2021, Fiji has experienced various restrictions of movement of both people and goods,” he said.
“This has been exacerbated by similar restrictions in global supply chain issues especially in China which is our major supply line.
“Your company has responded with agility and speed to maintain connectivity and optimise sales at every given opportunity.
“Our long-standing arrangements with suppliers, both locally and globally, have ensured that we receive prioritised attention.”
Mr Karan added the problems with international shipping had seen product and shipping costs increase significantly thereby bringing inflationary pressures to Fiji.
The supply chain challenges were anticipated to continue, in the medium term, according to the chairman and it would affect both local distributors of overseas sourced products as well as their own imported lines.
He said it was imperative they kept abreast of developments and take the necessary actions to mitigate the impact.
The company’s share price was said to have increased to a high of $3.62 during the financial year and ended at $3.38.
The share price as at June 30, 2020, was $3.48.
“Dividends paid and or declared during the year-ending 30 June, 2021 amounted to 2.8 cents per share with a total payout of $4.2 million.
“The reduced amount declared reflects the continuing uncertainty in the midst of the COVID-19 pandemic and the need to remain conservative.”
During the year RBG was stated to have completed construction of the three-storey stage five development at the JetPoint complex in Nadi and continued with the construction of the convention centre and retail shops at the Harbour Point complex in Lami.
“The impact of the pandemic has caused tenants at our JetPoint complex in Nadi much hardship and we have provided rental rebates on a case-by-case basis.
“The reduction in rental has collectively impacted our revenues and results for the year.
“We also look forward to the opening of our new supermarket store in the recently developed MyFNPF Centre located in Nadi Town once the containment zones and international borders are open.”
Mr Karan said their online presence was greatly appreciated by local as well as overseas customers who intended to buy without having to come out of their safety bubbles.
RBG continuous upgrade to its online experience had proven an asset in these challenging times.
“Our technological solutions also ensured distancing protocols and the separation of teams which guaranteed continued operations during times of isolation requirements for various staff members.
“We are grateful for the resilience shown by our people, who continually demonstrated agility in their thinking, dedication and commitment to work.
“These were tested during the various lockdowns and rapidly changing protocols of the Ministry of Health and Medical Services,” he added.
Mr Karan said they were fortunate to have such competencies and dedication throughout their business.
“The ability of the team to adjust to the demand of the COVID complexities was exceptional.
“The team showed an amazing willingness to trial remote working protocols and team structures which allowed us to refine some of the work protocols well in advance of the lockdown.
“RB Patel continues to focus on the safety and wellbeing of both its employees and customers with procedures implemented to ensure that our supermarkets and workplaces are adequately protected.”
