Various sectors contribute to group’s profits
3 October, 2023, 6:15 pm
The tourism sector of the Fijian Holdings Ltd (FHL) accounted for 29 per cent of the total group profit attributable to the substantial influx of tourists following the reopening of our borders in 2022.
FHL Group chief executive officer Jaoji Koroi said the retail sector of the group also continued its growth trajectory, posting an impressive 18 per cent increase in profit before tax.
According to Mr Koroi the retail sector constitutes a substantial 52 per cent of the total group revenue, solidifying its position as a cornerstone of its operations.
“It is worth noting that sustaining the current profit margin remains a challenge, owing to fierce competition among retail stores and supermarkets,” said Mr Koroi in his CEO’s statement in the FHL 2023 Annual Report.
Similarly the group’s construction sector, which ranks as the second largest contributor to the group’s revenue, witnessed an improvement as the nation began its recovery from the pandemic.
According to the CEO this resurgence translated into increased profits for FHL’s companies within the construction segment, notably Basic Industries Pte Ltd and Pacific Cement Pte Ltd.
“Nevertheless, managing competition, meeting evolving consumer expectations, national budgetary allocations toward infrastructure projects, and international price volatility of raw materials pose ongoing challenges for this sector.
“In the financial sector, primarily represented by Merchant Finance Ltd, we have made substantial strides in enhancing the quality of our loans portfolio. Strategic measures have been implemented to address nonperforming accounts, and we have effectively managed lending costs amid the heightened liquidity in the economy. The introduction of new products during the year also contributed to a remarkable 58 per cent growth in net profit before tax.”
Meanwhile the group recorded a decrease in profit in its property sector mainly because of the absence of gains on investment properties during the year.
Mr Koroi explained that their Ratu Sukuna building remained vacant as renovation works were currently in progress and despite supply chain challenges and price fluctuations, construction work for FHL Tower was nearing completion.
While the group’s media and entertainment sector recorded a profit of $1m this year compared with a loss of $0.2m last year, the sector still remained a challenging segment for the group.
“The industry continues to be disrupted by technology, which has introduced multiple avenues for advertising and streaming content, in contrast to traditional cinema and television methods. Management continues to focus intently on this area, exploring alternative strategic options to address the evolving landscape.”