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The Fiji Sugar Corporation (FSC) continued on its loss-making streak with an $11.4 million net loss in the first half of its 2009-2010 financial year.
The South Pacific Stock Exchange listed company this week filed its half-yearly consolidated financial accounts ending 30 November 2009.
The report showed that while the Corporation recorded an increase in total revenue – $177.7 million compared to $166.4 million for the same period last year – total expenses far exceeded the income forcing the end result to read negative. The loss is a 17.5 percent increase from last year’s recorded $9.7 million loss for the same period.
The devaluation of the Fiji dollar in April last year impacted the Corporation’s financial position, while it is still paying back an offshore loan to finance its Mill Upgrade program.
Thus, it closed its books on 30 May 2009 with a $36 million loss.
The financial woes have been compounded with reduced earnings from its main sugar buyer, the European Union, who replaced quota allocations under the 1975 Lome Convention with preferential prices in 2008 under the new Cotonou Trade Agreement.
“Following the reform of the EU sugar regime, sugar prices reduced by 14.3 percent in 2008. A further 21.7 percent reduction will come into force from 1 October 2009, taking total reductions to 36 percent,” FSC chairman Gautam Ramswarup said in announcing the 2009 financial results.
This 36 percent reduction is expected to heavily influence the company’s 2010 financial performance.
