The Fiji Sugar Corporation Limited (FSC) has released its financial results for the year ending on May 31, 2024, showing notable growth in revenue and profitability despite various challenges.
Although cane production fell by 15% due to unfavorable weather, FSC managed to boost its sales revenue by 12% and increased its share of proceeds by 10%. This improvement was attributed to better operational efficiencies, strict cost-control initiatives, and innovative strategies.
Chairman Nitya Reddy stated, “The Corporation has once again shown its resilience, successfully navigating significant challenges, particularly in light of the long-term neglect and mismanagement that have plagued our operations for decades.” He emphasized that both the industry and FSC are currently facing severe problems, which have never been seen before in their 150-year history, due largely to ineffective management and oversight over the past 20 years.
Reddy pointed out that every aspect of performance has faced serious difficulties, including low cane production, declining sugar output, and outdated mill infrastructure due to insufficient maintenance and investment. He described this as a pivotal moment for both the past and future of the corporation, focusing efforts on rebuilding trust throughout the industry.
The Chairman criticized past negligence in mill maintenance and oversight, urging those calling for quick fixes to recognize the ongoing realities. He highlighted the corporation’s commitment to enhancing manufacturing efficiencies, improving cane production, and adopting a more equitable payment system based on sugar quality rather than weight.
FSC saw its revenue surge by 12% to $235.2 million, marking its highest revenue returns in the past 18 years. This increase is reflective of improved sales and higher pricing trends.
Key financial achievements included:
– An increase in the Corporation’s share of proceeds to $71.15 million, up from $64.25 million the prior year.
– A trading profit rise to $13.13 million, compared to $7.45 million the previous year.
– An operational profit of $2.51 million, recovering from a loss of $4.98 million last year.
– Positive EBITDA of $24.97 million, compared to $17.87 million previously.
– An operating loss reduced to $4.24 million, a significant recovery from a $23.0 million loss last year.
– An investment of $10.05 million in Property Plant and Equipment, increased from $6.94 million.
Reddy expressed confidence that with ongoing stakeholder support, FSC is poised to strengthen its future and the overall sugar industry in Fiji. The corporation is dedicated to its strategic goals, focusing on restructuring, enhancing crop production, improving mill performance, and maximizing revenue.
In addition to financial outcomes, FSC is committed to sustainability and engaging with the community, promoting environmentally friendly practices while supporting growers for the industry’s long-term success. Reddy affirmed their resolve to overcome existing challenges by exploring new market opportunities and fostering partnerships for sustained success.