Editorial: $1.3M Bonus Payout A Story Of Fiji Pine’s Ltd’s Success
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Friday 07 December 2018 | 12:44
Acting Prime Minister and Attorney-General Aiyaz Sayed-Khaiyum at Drasa, Lautoka, with staff members of Fiji Pine Limited and their families. Report >P12. Photo: DEPTFO News
Fiji Pine Limited and Tropik Wood gave yet another bonus payout of $1.3 million to their staff, which effectively ranks the companies among the top firms in Fiji.
While these bonus payouts have become a regular feature for many, it was not always the case for Fiji Pine Limited.
At one stage, it was debt riddled, had antagonistic relationships with landowners and the workers’ morale was at an all-time low.
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This has, of course, all changed and the company is making a good profit. But it is important that we remember where the company has come from.
Until 2013 landowner shareholders did not receive a single cent of promised returns or bonus payouts.
Within five years it went from $0 to $7 million paid in one year.
This is a remarkable transformation.
The real change in the company came about when Faiz Khan was brought in.
He is the executive chair of the Fiji Pine Group.
In the past seven-and-a half-years, under his leadership, the company has paid off a $50 million debt to the European Investment Bank, Westpac, Fiji Development Bank, Fiji National Provident Fund and other creditors and became debt free.
In the past seven-and-a-half years, more than $60 million was injected in infrastructure upgrades and this was done by the company without borrowing a single cent, but through generating excess operating cash flows.
About 25,000 hectares of expiring leases were renewed and replanting all available productive land with pine was undertaken in the past seven-and-a-half years as well.
Today, the company holds more than $20 million in term deposits and went from a position of insolvency facing imminent closure seven and a half years ago.
In one month, the term deposits are set to grow to $30 million.
Fiji Pine has made record operating profits of around $35 million this year from a persistent position of losses.
They are another success story and a real show of what we can achieve by having the right people appointed to do the right job.
Well done Faiz and team!
Feedback: jyotipi@fijisun.com.fj
