Company loses N528m to naira devaluation

ayodele johnson

February 19, 2016 7:04 AM

A lot of business firms are already counting their losses due to the added expenses that has been accrued due to the Central Bank's new forex policy

Christopher Eze, Chairman, John Holt board of directors

John Holt Nigeria Plc has revealed that it has suffered a loss amounting to a sum of N528m last year due to the devaluation of the naira.

According to a statement, the company’s operating profit reduced by 18.50 per cent to N1.63bn from N2bn the previous year.

The company which specialises in businesses ranging from engineering, leasing, trade and distribution, said the devaluation of the naira has led to a huge loss as most of its raw materials and equipments were imported.

READ: Currency continues depreciation to 391/dollar

“Although, the company and its subsidiaries made a loss before tax of N171m compared to profit before tax of N427m last year, N528m was exchange loss suffered as a result of the devaluation of naira,” a company statement read.

“Sales were also negatively affected by the tension and uncertainty associated with the 2015 general elections and the subsequent lull in the economy after the elections,” it added.

A lot of business firms are already counting their losses due to the added expenses that has been accrued due to the Central Bank's new forex policy.

ayodele johnson