Six companies listed on the Nigerian Exchange Limited recorded a combined foreign exchange loss of N255.72bn in their financial results for the year ended December 31, 2024, according to findings by The PUNCH.

The losses were attributed to the persistent depreciation of the naira and volatility in the foreign exchange market.

The companies affected include BUA Foods, Caverton Offshore Support Group, Honeywell Flour Mills, FTN Cocoa Processors, Beta Glass Plc, MRS Oil Nigeria, and CWG Plc.

Foreign exchange loss occurs when companies experience a decrease in the value of their foreign currency-denominated assets, liabilities, or transactions due to fluctuations in exchange rates.

A breakdown of the results showed that BUA Foods recorded the highest FX loss of N188.7bn in 2024, an increase from N81.86bn in 2023. Despite the loss, BUA Foods reported a profit before tax of N289.1bn, with a net profit after tax of N274.9bn, compared to the previous year’s figures.

Caverton Offshore Support Group saw its FX loss surge from N4.65bn in 2023 to N43.49bn in 2024, contributing to its overall operating loss of N50.53bn for the year.

Similarly, Honeywell Flour Mills posted an FX loss of N8.56bn, less than N20.19bn, in 2023. The company, however, reported a revenue increase from N123.99bn in 2023 to N277.06bn in 2024.

FTN Cocoa Processors, another affected firm, reported an FX loss of N11.68bn, up from N10.18bn in the previous year. The company’s revenue stood at N1.38bn, while its operating loss for 2024 was N10.31bn.

Beta Glass Plc, which recorded an FX gain of N1.79bn in 2023, posted a loss of N2.00bn in 2024. The company’s revenue for the year rose to N117.58bn from N62.91bn in 2023, while its operating profit increased to N24.39bn, up from N7.69bn in the previous year.

MRS Oil Nigeria also reported an FX loss of N1.29bn in 2024, an improvement from N3.22bn in 2023. The company’s revenue jumped from N182.31bn in 2023 to N312.23bn in 2024, with an operating profit of N9.65bn.

The rise in FX losses across these companies has been attributed to the devaluation of the naira following the Central Bank of Nigeria’s exchange rate unification policy.

Analysts have warned that unless forex stability is achieved, more companies may face deeper losses in 2025, potentially impacting overall market confidence.

Recently, The PUNCH reported that Nigeria’s foreign exchange reserves have recorded a significant decline within two weeks this January, dropping by $832.62m between January 6 and 21. Data from the Central Bank of Nigeria published on its official website highlights this development, marking the sharpest fall in reserves since April 2024. The decline raises fresh concerns about the nation’s external liquidity position amidst mounting economic pressures.

Meanwhile, The PUNCH reported that eight manufacturers, including Dangote, BUA, and Lafarge, saw their foreign exchange-related losses rise to N627.7bn in the first quarter of the year.


https://punchng.com/six-companies-record-n255bn-fx-loss/