A.G Leventis restrategies operations to regain profitability 

The A.G Leventis Group is restrategising its operations to ensure that the organisation and its subsidiaries return to profitability after recording a N2.6 billion loss in 2016.

“There is a general review of our operations and we are restructuring Leventis Foods. By the time we are done with the restructuring, we are sure the organisation will bounce back to profitability and our shareholders will be happy,” Ahmed Kazalma Mantey, group chairman, AG Leventis said during the company’s annual general meeting (AGM) held in Lagos recently.

In 2016, the group posted total revenue of N12.8 billion and a loss after tax of N2.6 billion, accounting for 1,350 percentage decrease from N177 million in 2015, the company’s financials states.

In its audited financial results, the organisation reported that the poor performance of the group was as a result of the volatility in the country’s macro-economic backdrop.

Commenting on the report, Michail Oikonomakis, executive vice chairman and CEO, stated that the organisation experienced huge forex scarcity in 2016 and the devaluation of the business also impacted its financials.

“We experience huge scarcity of forex and the devaluation of the naira also played a role in impacting our financials for the year negatively,” Oikonomakis said.

“Also high finance cost and the continuing increases in the cost of raw materials contributed to the loss for the year,” the CEO added.

Leventis Motors Division’s gross profit grew by 32 percent despite shortage of spare parts due to forex scarcity. Also, Leventis Foods Limited, another subsidiary of the group, recorded a gross profit of N96 million.

Josephine Okojie