- Recession Drags Down Julius Berger’s Profit by 256%
The Nigerian arm of the global construction giant, Julius Berger Plc, on Thursday announced that it recorded a loss of N3.8bn in the 2016 financial year, describing it as the worst performance ever in the last three decades.
According to the firm, the loss was due to the economic recession in Nigeria and the devaluation of the naira which crippled construction work throughout the country during the year under review.
It stated that the N3.8bn loss represents a 256.4 per cent decline compared to a profit after tax of N2.4bn posted in 2015.
In his address to shareholders at the company’s 47tth company’s Annual General Meeting in Abuja, the Board Chairman, Julius Berger Nigeria, Mr. Mutiu Sunmonu, explained that the operating business environment in 2016 was very tough and was one of the worst ever for the construction firm.
He said, “For Nigeria, the past year was one of the economically most difficult in close to three decades. Naira devaluation and a shortage of foreign currency magnified the hardship, making economic turnaround increasingly tough.
Julius Berger Plc and its subsidiaries were not insulated from this harsh reality. Across the group, the management made enormous efforts to protect profit and reduce risk, while proactive measures taken in previous years proved to be instrumental in supporting the group’s ability to withstand the prolonged nature of the economic downturn.
“More aggressive strategies and additional actions were required over the years as the situation worsened,” he added.