Flood damage, unrealised exchange loss, decline in sugar production as well as a the failed mill upgrade programs have been highlighted as major contributing factors to the Fiji Sugar Corporation's $175.1 million loss.
FSC CEO Deo Saran has described the financial year ending 31st May 2010, as the most difficult year recording a total loss of $175.1 million compared to a loss of $36.8 million in 2009.
Saran said for the year ended 31st May 2010 an independent consultant from New Zealand was engaged to carry out an impairment review of the assets of FSC.
Saran said based on this assessment and impairment loss of $173.4 million was recognised.
After taking impairment loss into account, the loss for the year was $175.1 million compared to a loss of $36.8 million in 2009.
Saran says the FSC recorded an operating loss of $24.6 million.
He also revealed that the total revenue for the year declined to $194.7 million compared to $245.8 million in the previous year which was attributed to the decrease in sugar production by 19% as well as decline in sugar price by 8%.
Saran said during the 2009 season 2.2 million tonnes cane was crushed producing 167,611 tonnes of sugar compared to 2.3 million tonnes cane crushed and 207,911 tonnes sugar produced in the previous season.
Saran also highlighted that the Mill Upgrade Programe Project has failed to deliver the additional benefits originally expected.
Story by: Ana Naisoro
