The Fiji Sugar Corporation Limited (FSC) has announced notable improvements in both revenue and profitability, despite encountering several challenges throughout the year.
Although cane production fell by 15 percent primarily due to adverse weather, FSC managed to increase sales revenue by 12 percent and its share of proceeds by 10 percent. This positive outcome, reported in the annual financial results for the year ending May 31, 2024, was supported by enhanced operational efficiencies and strict cost-control measures alongside innovative solutions.
Nitya Reddy, chair of the FSC Board, emphasized the Corporation’s resilience in overcoming significant obstacles, particularly amid the longstanding issues of neglect and mismanagement that have plagued the industry for decades.
He stated, “The sugar industry, especially FSC, has faced severe challenges in its 150-year history, stemming from poor management in the last two decades. We are experiencing an unprecedented existential crisis.” Reddy noted that various performance metrics have suffered, with low cane production, reduced sugar output, and deteriorating mill infrastructure being primary concerns.
“This is a pivotal time for both our past and future,” he remarked, adding that rebuilding confidence across the industry is a major task. He pointed out that the current state of the mills arises from years of neglect and inadequate maintenance, warning that those expecting quick fixes must recognize the realities of the situation.
FSC is committed to enhancing manufacturing efficiencies and is implementing a campaign focused on improving cane production logistics, transport, and harvesting. Reddy highlighted the need to address the prevalence of burnt cane and eliminate unauthorized cane varieties, while also suggesting a shift toward a payment system based on sugar quality instead of weight.
The Corporation’s revenue rose to $235.2 million, marking a 12 percent increase and showcasing its financial recovery. This growth was driven by increased sales and higher prices, yielding the highest revenue figures in 18 years, underscoring the sugar industry’s crucial role in Fiji’s economy.
Key financial highlights included a share of proceeds increase to $71.15 million from $64.25 million the previous year, a trading profit rise to $13.13 million from $7.45 million, and operating profit improving to $2.51 million from a loss of $4.98 million. The Corporation invested $10.05 million in property, plant, and equipment, up from $6.94 million.
Reddy expressed confidence that with ongoing stakeholder support, FSC can secure a sustainable future for the sugar industry in Fiji. He reaffirmed the Corporation’s commitment to its strategic pillars: restructuring, boosting crop production, enhancing mill performance, and optimizing revenue.
FSC continues to prioritize sustainability and community engagement, promoting eco-friendly practices and assisting growers to ensure the industry’s longevity. Reddy concluded with optimism about navigating ongoing challenges and strengthening future opportunities for long-term success.