Interest rates, which soared to 900 percent by December, saw the market for Turnall Holdings products immediately contract as money flow dried up. As a result, the company says in its report for the year ending December, demand for its products plummeted to less than half of normal in the first quarter of this year.
Many debtors defaulted on their payments and supplies to most customers were suspended. But there are now strong signs of recovery.
Customers have destocked and are now placing normal orders. There is also an improvement in export volumes.
Its results for last year were, however, quite pleasing with sales increasing by 443 percent from $6.7 billion to $36.1 billion. Exports accounted for 9 percent of the sales.
Volumes were down by 7.5 percent.
Operating profit increased from $2.8 billion to $13.7 billion but profit before tax shot up from $2.7 billion to $22.1 billion. It was boosted by interest income of $8.4 billion.
Net profit improved by 679 percent from $1.9 billion to $15.1 billion.
The company says it was adversely affected by price controls that were in place in the first five months of the year but it made up for this through significant price increases that were effected after the relaxation of price controls.