Fiji Sugar Corporation Faces Financial Crisis: Will Government Step In?

The Fiji Sugar Corporation has reported a substantial loss of $5 million from operational setbacks, alongside a net loss before income tax totaling $23 million as of May 31, 2023. This information is detailed in the corporation’s 2023 Annual Report.

As of the same date, the Corporation’s total liabilities surpassed total assets, resulting in a net liability of $400 million, with current liabilities exceeding current assets by $175.1 million.

The FSC faces a debt repayment obligation of $147.2 million for the financial year ending May 31, 2023. The report indicates that the Corporation requires funding to address its working capital needs, capital expenditures, and to offset operating losses.

Auditors have cautioned that given the Corporation’s financial situation, high levels of debt, and ongoing losses, there are concerns about its viability without government assistance, suggesting it may struggle to continue operations in the future.

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