The Fiji Sugar Corporation reported total liabilities of $404.3 million as of May 31, 2024, highlighting a need for government assistance to sustain operations, according to its 2024 annual report. The document reveals that the corporation has faced substantial losses in recent years.
For the fiscal year ending May 31, 2024, the corporation generated a profit from operations of $2.5 million, a significant recovery from the $5 million loss recorded in 2023. However, it still reported a net loss before income tax of $4.2 million, a decrease from the previous year’s $23 million loss.
The report indicates that as of May 31, 2024, the corporation’s total liabilities surpass its total assets, resulting in a net liability of $404.3 million, up from $400 million in 2023. Additionally, the FSC has debt repayment obligations totalling $156.1 million for the financial year ending May 31, 2025.
The report emphasizes the urgent need for additional funding to address working capital demands, ongoing capital expenses, and to cover the operational losses. It warns that, considering the current financial situation, including high debt levels and ongoing losses, the corporation will struggle to continue operations without government support.