The Fiji Sugar Corporation Limited (FSC) has announced substantial growth in revenue and profits despite facing numerous challenges. Even with a 15 percent drop in cane production due primarily to adverse weather, FSC managed to increase its sales revenue by 12 percent and its share of proceeds by 10 percent.
These positive results, outlined in the financial statements for the year ending May 31, 2024, were driven by improved operational efficiencies, strict cost-control measures, and innovative strategies. Nitya Reddy, the board chair, emphasized that the corporation demonstrated resilience by overcoming significant obstacles, particularly those stemming from decades of neglect and mismanagement.
Reddy remarked that the sugar industry, especially FSC, has been confronted with severe issues throughout its 150-year history, largely due to ineffective management and oversight over the past 20 years. He described the current situation as an existential crisis of unprecedented scale.
He noted that the performance metrics have deteriorated significantly, citing unsustainably low cane production, decreasing sugar output and revenue, crippling inefficiencies, and deteriorating mill infrastructure as contributors to the ongoing crisis.
Reddy characterized this as a pivotal moment for both the corporation’s past and future, asserting that efforts are being made to restore confidence throughout the industry. He acknowledged that the mills’ current state of disrepair is the result of long-term systemic neglect, poor maintenance practices, misguided investments, and a culture of detached oversight.
In addressing operational challenges, Reddy stated that the FSC remains focused on improving manufacturing efficiencies through initiatives aimed at boosting cane production, enhancing transportation, and adopting better harvesting and farm mechanization practices. He highlighted the need to migrate to a fairer payment structure based on sugar quality rather than simply weight.
He emphasized that many structural reforms are necessary, urging all sectors of the industry to take responsibility for their efficiency and success rather than relying solely on FSC. Financially, the corporation reported a 12 percent revenue increase to $235.2 million, highlighting its crucial role in Fiji’s national economy.
Key financial highlights include a share of proceeds of $71.15 million, a trading profit of $13.13 million, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $24.97 million. The corporation’s investment in property, plant, and equipment also rose to $10.05 million.
Reddy expressed confidence that with the ongoing support of stakeholders, FSC can build a more sustainable and robust future for Fiji’s sugar industry. He reiterated the corporation’s commitment to restructuring, revitalizing crop production, enhancing mill performance, and optimizing revenue.
He also noted FSC’s dedication to sustainability and community engagement, emphasizing environmentally responsible practices and collaboration with growers to ensure the long-term viability of the sugar sector. He concluded by reaffirming the corporation’s determination to overcome ongoing challenges and capitalize on new market opportunities.