The Fiji Sugar Corporation has announced a substantial loss of $5 million due to operational setbacks, alongside a net loss before income tax of $23 million as of May 31, 2023. This is detailed in the 2023 Annual Report of the corporation.
As of the same date, the Corporation’s total liabilities surpassed its total assets, resulting in a net liability of $400 million. It also reported that current liabilities exceed current assets by $175.1 million.
FSC is facing a debt repayment obligation of $147.2 million for the financial year ending May 31, 2023. The report indicates that the Corporation requires financing to address its working capital needs, capital expenditures, and to cover operating losses.
According to auditors, the Corporation’s financial situation, high debt levels, and ongoing losses raise concerns about its ability to continue without Government assistance.