The Fiji Sugar Corporation Limited (FSC) has reported notable improvements in both revenue and profitability despite encountering several challenges.
Although cane production dropped by 15 percent, largely due to adverse weather, FSC achieved a 12 percent increase in sales revenue and a 10 percent rise in its share of proceeds. These gains, outlined in the financial results for the year ending May 31, 2024, were supported by enhanced operational efficiencies, strict cost-control strategies, and innovative practices.
Nitya Reddy, the chair of the FSC Board, stated that the Corporation has shown resilience in overcoming significant obstacles, particularly in light of ongoing neglect and mismanagement that plagued operations for many decades.
“It is well-known that our industry, and FSC specifically, has faced some of the most severe challenges in its 150-year history, rooted in two decades of uninspired management and oversight. We are currently confronting a crisis of unprecedented proportions,” Reddy remarked.
The chair expressed that every performance metric has suffered significantly. “Unbearably low cane production, decreasing sugar output and revenues, crippling inefficiencies, and outdated mill infrastructure due to insufficient preventative maintenance have all contributed to this ongoing crisis.”
“This represents a turning point in our history and future. We are dedicating all of our efforts and resources towards rebuilding trust within the industry,” Reddy emphasized.
He further noted that the dilapidated state of the mills today is not solely the result of recent actions, but a culmination of years of systemic neglect and poor investments. “Those expecting instant solutions must recognize these realities,” Reddy added.
The Corporation’s revenue rose by 12 percent to $235.2 million, driven by increased sales and higher prices, achieving the highest returns in the past 18 years, underscoring the sugar industry’s significance to Fiji’s economy.
Key financial highlights include:
– The Corporation’s share of proceeds was $71.15 million, up from $64.25 million the year prior.
– Trading profit jumped to $13.13 million, compared to $7.45 million in the previous year.
– Profit from operations was $2.51 million, recovering from a loss of $4.98 million the previous year.
– Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) reached $24.97 million, rising from $17.87 million.
– The operating loss narrowed to $4.24 million, down from $23.0 million the previous year.
– Investment in Property Plant and Equipment totaled $10.05 million, a rise from $6.94 million.
Reddy expressed confidence that with ongoing stakeholder support, FSC can foster a more resilient and sustainable future for the sugar industry in Fiji. The corporation remains focused on restructuring, revitalizing crop production, enhancing mill performance, and optimizing revenue.
He concluded by affirming FSC’s commitment to improving operational efficiency, reducing downtime, and seeking new market opportunities, all of which have contributed to the encouraging financial results and positioned FSC for future growth. Additionally, the corporation continues to prioritize sustainability and community engagement, promoting environmentally friendly practices and supporting growers to ensure the industry’s long-term viability. “We recognize the challenges we still face, but we are determined to overcome them,” he stated.