One of Fiji’s largest retail chain RB Patel Group Ltd (RBG) recorded a $4.29 million operating profit after tax for the year ended March 31 this year, the company’s 2008 annual report revealed.
This indicates an increase of over 15.4 per cent.
The report also announced strong sales revenue for the same period, which increased by 4.98 per cent to $75.3 million.
For the same period last year, sales revenue was recorded at $71.7 million.
These earnings were derived from RBG’s principal activities: retailing and wholesaling of general merchandise, owners and administrators of properties, and equity investment.
“Results for the year were very pleasing when viewed in light of the current economic conditions and the general trading environment,” RBG Board chairman Surendra Patel said.
However, Patel said the company was expecting a slowdown with measures implemented for the benefit of all its customs in the country.
“Global price increases in almost all sectors have brought with it reductions in the purchasing power of our customers,” Patel said via the report.
“This trend appears to be causing havoc in all the major developing countries and is expected to continue to create shortages and erratic supply of goods,” he said.
Patel said new measures introduced in price control would put downward pressure on company profits.
“Although well intentioned, these measures will in our opinion cause more problems in due course. Businesses cannot survive without adequate returns on their investment and these reductions in margins are likely to affect the smaller businesses and will see their profits reduce dramatically,” he said.
“Strong healthy companies with good profits are the cornerstone of a strong economy.”
Patel highlighted the possibility of inflation accelerating in the coming year. He said inflation in February alone was 7.6 per cent from 7.4 per cent in January – the highest rate of inflation since January 1999.
“Although we are expecting a slowdown, RBG will continue to strive to ensure that the company is in a good position to take advantage of opportunities as they arise. Even a resilient industry like ours will show signs of slowdown with these conditions continuing,” Patel said.
“We urge the Government to implement policies that will create the necessary environment, to promote investments and economic activities, in which all taxpayers can prosper,” he said.
