The NGX’s most recent earnings results reveal that PZ Cussons and Nigerian Breweries, among other blue-chip brands, FX exposures cost the blue-chip companies a substantial sum of money.
Nigerian Breweries, in particular, reported its lowest earnings in almost ten years, primarily attributed to significant operational costs and foreign exchange losses. The brewery company experienced a surge in foreign exchange losses due to its foreign currency-denominated payables. The net loss on foreign exchange transactions increased to N153.33 billion in 2023, compared to N26.34 billion in 2022 and N7.04 billion in 2021.
To fully capitalize on global prospects, your company must be set up for smooth foreign exchange transactions and maintain an awareness of exchange rates and other associated costs.