The Fiji Sugar Corporation Limited (FSC) has reported its financial results for the year ending 31 May 2024, showing notable improvements in revenue and profitability despite significant challenges.
Even with a 15% decline in cane production due to adverse weather, FSC recorded a 12% increase in sales revenue and a 10% rise in its share of proceeds. This positive outcome was supported by improved operational efficiencies, effective cost-control measures, and innovative strategies.
Chairman Nitya Reddy commented, “Once again, the Corporation has shown its resilience by overcoming major challenges, particularly in light of the longstanding neglect and mismanagement that have affected operations for decades.” He noted the severe issues facing the industry, describing an existential crisis stemming from poor management over the past 20 years.
Reddy highlighted that various performance metrics have been adversely affected, including unsustainably low cane production, declining sugar output, and deteriorating mill infrastructure. He emphasized that all efforts are directed towards rebuilding confidence across the industry.
He stated, “The current state of our mills is not a result of recent actions; it is the outcome of years of neglect and inadequate maintenance.” Reddy cautioned those expecting quick fixes to recognize the historical context of the industry’s challenges.
FSC is concentrating on restoring manufacturing efficiencies and is committed to enhancing cane production through better transport, harvesting, and farm mechanization. Reddy underscored the necessity of addressing issues like burnt cane and the elimination of unapproved cane varieties, advocating for a payment model based on sugar quality rather than weight.
The financial highlights for FSC include a revenue increase of 12% to $235.2 million, with the highest revenue returns in 18 years underscoring the sugar industry’s significance to Fiji’s economy.
Key financial metrics include:
– Share of proceeds rose to $71.15 million from $64.25 million the previous year.
– Trading profit improved to $13.13 million from $7.45 million.
– Profit from operations reached $2.51 million, rebounding from a loss of $4.98 million.
– EBITDA rose to $24.97 million from $17.87 million.
– The operating loss was reduced to $4.24 million from $23 million.
– Investments in Property Plant and Equipment totaled $10.05 million, an increase from $6.94 million.
FSC expressed confidence in building a robust and sustainable future for the sugar industry in Fiji, emphasizing its commitment to restructuring, revitalizing crop production, and improving mill performance. The Corporation also prioritized sustainability and community engagement, committing to environmentally responsible practices and supporting growers to ensure the industry’s long-term viability.
Reddy concluded by affirming, “We acknowledge the challenges we face but are determined to overcome them by exploring new market opportunities and strengthening our partnerships.”