The Fiji Sugar Corporation has reported a notable loss amounting to $5 million due to operational challenges, along with a net loss before income tax of $23 million as of May 31, 2023. This information was released in the company’s 2023 Annual Report.
As of the end of May 2023, the Corporation’s total liabilities surpassed its total assets, resulting in a net liability of $400 million. Additionally, the current liabilities exceed current assets by $175.1 million.
FSC faces a debt repayment obligation of $147.2 million for the financial year ending May 31, 2023. The report indicates an urgent need for funding to cover operational losses, capital expenditures, and working capital requirements.
The auditors have noted that, considering the Corporation’s financial status, high debt levels, and ongoing losses, these circumstances suggest that without support from the government, FSC may struggle to continue its operations.