The Fiji Sugar Corporation Limited (FSC) has announced its financial results for the fiscal year ending 31 May 2024, revealing considerable growth in revenue and profitability despite facing significant challenges.
The corporation experienced a 15% drop in cane production due to unfavorable weather conditions, yet it still achieved a 12% increase in sales revenue and a 10% rise in its share of proceeds.
This positive outcome was supported by improved operational efficiencies, strict cost-control measures, and innovative strategies. Nitya Reddy, Chairman of FSC, emphasized the company’s resilience in overcoming substantial challenges, particularly in light of the longstanding neglect and mismanagement that have plagued its operations for decades.
Reddy pointed out that the industry is currently facing one of the most severe crises in its 150-year history, attributed to poor management and oversight over the last two decades. He noted that every performance metric has been adversely affected, citing low cane production, declining sugar output and revenues, crippling inefficiencies, and neglected mill infrastructure.
He stressed the importance of restoring confidence across the industry, acknowledging it as a daunting task that cannot be underestimated. Reddy criticized the deteriorating condition of the mills, attributing it to decades of neglect, inadequate maintenance, misinvestments, and disengagement from authorities, warning against expecting immediate improvements.
FSC is committed to enhancing manufacturing efficiencies through initiatives aimed at increasing cane production and improving logistics in transport, harvesting, and mechanization. Reddy also highlighted the need to switch to a payment system based on sugar quality rather than weight, emphasizing the necessity for structural reforms across the industry.
The corporation reported a 12% increase in revenue to $235.2 million, marking a notable improvement driven by higher sales and prices. This is the highest revenue recorded in 18 years, underscoring the sugar industry’s critical role in Fiji’s economy.
Key financial highlights include:
– Share of proceeds increased to $71.15 million from $64.25 million.
– Trading profit rose to $13.13 million from $7.45 million.
– Profit from operations improved to $2.51 million from a loss of $4.98 million.
– EBITDA reached $24.97 million, up from $17.87 million.
– The operating loss for the year was $4.24 million, a significant reduction from the prior year’s loss of $23 million.
– Investments in Property, Plant, and Equipment totaled $10.05 million, up from $6.94 million.
FSC expressed confidence that, with ongoing support from stakeholders, they can cultivate a more resilient and sustainable future for the sugar industry in Fiji. The corporation remains dedicated to its strategic focus on restructuring, revitalizing crop production, improving mill performance, and optimizing revenue.
In addition to financial performance, FSC is committed to sustainable practices and community engagement, promoting environmentally responsible methods and supporting growers to ensure the sugar industry’s long-term viability.
Reddy reiterated the organization’s determination to face ongoing challenges while exploring new market opportunities and strengthening partnerships for future success.