Fiji Sugar Corporation Suffers $23.1 Million Loss

Expenses incurred by the Corporation was $155.89m compared to $181.26m for 2018.
02 Oct 2019 16:25
Fiji Sugar Corporation Suffers $23.1 Million Loss
Attendees Former Prime Minister Mahendra Chaudhry (second from right) and Ben Padarath during the Fiji Sugar Corporation annual general meeting at Tanoa Waterfront Hotel on October 1, 2019.

The Fiji Sugar Corporation suffered a trading loss of $23.1 million for the year ending May 31, 2019.

This was compared to a profit of $844,000 for the 2018 financial year.

Loss before income tax was $80.07m compared to $24.62m last year.

This included cane payment to farmers throughout the year.

FSC received an income of $132.8m compared to $182.1m for 2018.

Expenses incurred by the Corporation was $155.89m compared to $181.26m for 2018.

FSC received $98.38m from sugar and molasses sales through export compared to $147.67m for 2018 while domestic sales amounted to $34.39m compared to $34.43 for 2018.

The company’s total assets stood at $203.9 m with $159m being non-current assets and $44.36m as current assets.

Total equity deficit stood at $321.8m as at May 31, 2019, with the total equity and liabilities standing at $203.9m.

Meanwhile, an impairment review of the assets of the Corporation for the year ending 31 May 2019 was carried out by an independent consultant from New Zealand.

Accumulated impairment losses provided in earlier years totalled $78.4m and further impairment of $5 million was provided in 2018 in respect of the 50-tonne boiler at Labasa Mill.

During the year, FSC borrowed US$15m (FJ$32m) from Czarnikow Group Limited by way of trade finance to meet operational expenditure and growers cane payments.

The loan would be repaid through the second and third shipments of sugar for the 2019 crushing season.

FSC also secured a $50m loan from the Fiji National Provident Fund to meet its working capital and capital expenditure requirements, against which the drawdown was $25m.

A further Bridging Finance Facility of $21.21m was secured from FNPF in May this year to fund the fourth cane payment including the top-up by FSC of the guaranteed price of $85 per tonne.

The security provided was through confirmed property sales and a Government guarantee with a repayment term of six months.

FSC also secured a $20m loan from Bred Bank to assist with upgrading works at the Lautoka, Rarawai and Labasa mills.

The loan is a four-year term with Government guarantee with $5m payable each year.

As at May 31, 2019, the loan was fully drawn down and the $5m paid.


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