The Fiji Sugar Corporation Limited (FSC) has reported notable growth in both revenue and profitability, despite encountering a range of challenges.
Although sugar cane production fell by 15 percent due to unfavorable weather, FSC managed to increase its sales revenue by 12 percent and its share of proceeds by 10 percent. This encouraging performance, detailed in the financial results for the year ending May 31, 2024, was supported by improvements in operational efficiencies, strict cost-control measures, and innovative practices.
FSC Board Chair Nitya Reddy emphasized the Corporation’s resilience in the face of significant obstacles, particularly given the long-standing neglect and mismanagement that have plagued the industry for decades. Reddy remarked that current issues have created an existential crisis as serious as any the industry has faced in its 150-year history, attributing it to poor management and oversight over the last 20 years.
All performance metrics have suffered as a result, including low cane production, diminishing sugar output and revenues, severe inefficiencies, and a dilapidated mill infrastructure suffering from inadequate maintenance and investment. Reddy acknowledged that this period is pivotal not only for assessing the past but also for future recovery, as the Corporation works hard to rebuild confidence throughout the industry.
Reddy further outlined that the current state of the mills is not the result of recent actions but rather a culmination of years of neglect, insufficient maintenance, and mismanagement. He cautioned that expectations for immediate improvements should take these realities into account.
To address these issues, FSC is committed to restoring manufacturing efficiencies and enhancing cane production through better logistics in transport, harvesting, and mechanization. Reddy advocated for moving to a payment system that prioritizes sugar quality over weight.
The Corporation’s revenue rose to $235.2 million, marking a 12 percent increase and reflecting its importance to Fiji’s economy. Key financial highlights included an increase in its share of proceeds to $71.15 million, a trading profit rise to $13.13 million, and a significant improvement in operational profit and EBITDA.
FSC invested $10.05 million in property, plant, and equipment, up from $6.94 million the previous year. Reddy expressed confidence in the ongoing support of stakeholders to create a sustainable future for the sugar industry in Fiji and reiterated FSC’s commitment to restructuring, improving crop production, optimizing mill performance, and enhancing revenue.
Finally, Reddy noted that FSC is dedicated to sustainability and community engagement, promoting environmentally responsible practices and supporting growers to ensure the longevity of the sugar industry while committing to overcoming current challenges through new market opportunities and strengthened partnerships.