NIGERIA – Nigerian Breweries Plc, Nigeria’s largest brewer, has unveiled plans for a company-wide reorganisation aimed at securing a resilient and sustainable future amid challenging economic conditions.  

The reorganisation includes the temporary suspension of operations in two of its nine breweries, as part of efforts to improve operational efficiency and financial stability. 

In a statement issued by Sade Morgan, the corporate affairs director of Nigerian Breweries, the company emphasized the necessity of these measures to enable a return to profitability amidst a persistently challenging business environment.  

The decision comes as the company faces significant financial pressures, including double-digit inflation rates, naira devaluation, foreign exchange challenges, and diminished consumer spending. 

Hans Essaadi, the managing director/CEO of Nigerian Breweries, underscored the strategic importance of the business recovery plan in ensuring continuity and sustainability.  

“The tough business landscape characterised by double-digit inflation rates, naira devaluation, FX challenges and diminished consumer spend has taken its toll on many businesses, including ours.  

This is why we have taken the decision to further consolidate our business operations for efficient cost management and optimal use of our resources for future sustainable growth,” he said. 

As part of the reorganisation, Nigerian Breweries plans to optimize production capacity in its other seven breweries, some of which have received significant capital investment in recent years.  

The company is committed to mitigating the impact on its employees affected by the temporary suspension by exploring options such as relocation and redistribution to other facilities, as well as providing strong support and severance packages. 

Nigerian Breweries also reiterated its commitment to supporting host communities and consumers, leveraging its strong supply chain footprint and diverse portfolio of brands. 

The company recently expanded its portfolio with the acquisition of an 80 percent stake in Distell Wines and Spirits Limited, demonstrating its resilient and forward-thinking strategy to deliver long-term value creation. 

In letters addressed to the leadership of the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB), Nigerian Breweries informed both unions of its proposed plan, in compliance with labor requirements.  

The company has invited the unions to discussions on the implications of the proposed measures, highlighting its commitment to transparency and collaboration. 

Furthermore, Nigerian Breweries has notified the Nigerian Exchange Group (NGX) of its plan to raise capital of up to N600 billion through a Rights Issue, aimed at restoring the company’s balance sheet following significant finance expenses incurred in 2023. 

“In a difficult operating environment, the Board will ensure that the company builds on its more than 77 years experience of operating in Nigeria to cope with current realities. The company will continue to be resilient and forward-thinking, leveraging our broad portfolio, strong supply chain footprint and passionate workforce to drive long-term value creation for its shareholders and other stakeholders,” said Uaboi Agbebaku, the company secretary. 

Despite facing challenges, the company remains resilient and forward-thinking, leveraging its extensive experience and resources to navigate current realities and drive long-term value creation for shareholders and stakeholders. 

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