In its bid to secure a resilient and sustainable future for its stakeholders, the leadership of Nigerian Breweries Plc has disclosed its plans for a company-wide reorganization.
The move comes after the Company recorded a net loss of approximately N106 billion in its 2023 full year results.
The loss is due to a combination of challenging economic factors ranging from increased operational costs, continued pressure on consumer disposable income, escalating inflation rates, and FX volatility, amongst others.
In letters signed by the Company’s Human Resources Director, Grace Omo-Lamai, and addressed to the leadership of the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB), the Company informed both Unions that its proposed plan would include operational efficiency measures and a company-wide reorganisation that would see to the temporary shut down of operations in two of itsbreweries.
As a result, and in accordance with labour requirements, the Company invited the Unions to discussions on the implications of the proposed measures.
As gathered, the company had earlier notified its customers of its plan to raise capital of up to 600 billion naira by way of a Rights Issue, as a means of restoring a healthycompany-balance sheet following the net finance expenses of N189 billion recorded in 2023 driven majorly by a foreign exchange loss of N153 billion resulting from the devaluation of the naira.
Speaking on these developments at the 78th Pre-Annual General Meeting Media Briefing, Mr. Hans Essaadi, Managing Director/CEO Nigerian Breweries Plc, described explained that the recovery plan is a strategic and vital in the face of a persistently challenging operating environment.
It would be recalled that Nigerian Breweries recently added to its broad portfolio an 80% business stake in Distell Wines and Spirits Limitedas a demonstration of its resilient and forward-thinking strategy to deliver long-term value creation for its shareholders.
The Nigerian Breweries’ Business Recovery Plan includes a Rights Issue; a review of the company’s current organizational structure and size as agreed with the Industry Union; the temporary suspension of operations in two of its nine breweries, and an optimization of production capacity in the other seven breweries, some of which have received significant capital investment in recent years.
Nigerian Breweries remains committed to the long-term future of Nigeria and stands as a cornerstone of Nigeria’s beverage industry.