Business News

FX Crisis: Honeywell loses N8.635 billion in nine months

Nigeria’s persistent exchange rate fluctuations have led to N8.635 billion in exchange rate losses for Honeywell Flour Mills Plc, one of the leading flour millers operating in the country.

This is according to findings by Naijaonpoint from the nine months’ unaudited financial reports of the company.

In the period under review, Honeywell Flour Mills Plc reported N8.635 billion in foreign exchange losses in the nine months as against N3.522 billion posted in 2022, accounting for 145% increase in the loss.


This firm declared a loss despite reporting a revenue increase.

According to Nairmetrics findings, the company reported a revenue of N79.444 billion for the nine months as against N76.495 billion in 2022, representing a 3.86% increase.

However, due to the rising cost of sales which swallowed much of the earnings following rising inflation and high exchange rate, the company declared a loss in earnings, Honeywell Flour Mills posted a loss of N4.376 billion from a loss of N7.353 billion in 2022.

The Central Bank of Nigeria (CBN) announced changes in the Nigerian foreign exchange operations which required the immediate collapse of all segments of the market into the Investor & Exporter (I&E) foreign exchange window and reintroduced the ‘willing buyer, willing seller’ model.

The Naira has moved from N465 against the dollar at the end of May 2023 to close at N786.02/$1 at the official market on Wednesday 1st November, giving rise to a net exchange loss of these companies.

Some shareholders of quoted companies listed on the floor of the Nigerian Exchange Limited believe that the elevated Exchange rate will deny them expected dividends from the companies especially those that are exposed to foreign loans.

Shareholders interviewed by Naijaonpoint following the free fall of the naira arising from the harmonization of exchange rates indicated that the rising exchange rate is hurting the profitability of Nigerian companies with foreign loans.

Mr. Joeseph Bamidele, an independent shareholder, speaking to Naijaonpoint exclusively said Nigeria companies face low or no profits due to the rising exchange rate.

Bamidele noted that as the naira depreciates, the value of the companies’ foreign currency liabilities increases, while the value of their foreign currency assets decreases.

The National Co-Ordinator of the Independent Shareholders Association of Nigeria, (ISAN) Mr. Moses Ibrude also in an exclusive chat with Naijaonpoint said that Nigerian companies with foreign loans are facing significant challenges due to the rising exchange rate.

Moses noted that many of these companies are incurring losses, which is affecting their shareholders, particularly pensioners who rely on dividends for survival.