Nigerian Breweries Embarks On Strategic Recovery Plan to Boost Profitability
Nigerian Breweries Plc has embarked on a company-wide reorganisation business recovery plan to ensure a sustainable future for its stakeholders.
The company’s Human Resource Director, Grace Omo-Lamai, said this in a statement signed by Mrs Sade Morgan, its Corporate Affairs Director, to the leadership of some food and beverage associations on Friday in Lagos.
The associations include the National Union of Food, Beverage & Tobacco Employees and the Food Beverage and Tobacco Senior Staff Association.
Omo-Lamai said the move was essential to improve the company’s operational efficiency and return to profitability, in the face of the challenging business environment.
She said the proposed plan would include operational efficiency measures and a company-wide reorganisation that includes the temporary suspension of operations in two of its nine breweries.
“As a result, and by labour requirements, the company invited the unions to discussions on the implications of the proposed measures.
“It will be recalled that the company recently notified the Nigerian Exchange Group (NGX) of its plan to raise capital of up to N600 billion by way of a rights issue. Banks Face Risks over 24hrs FX Positions Sell Down
“This is as a means of restoring the company’s balance sheet to a healthy position following the net finance expenses of N189 billion recorded in 2023 driven mainly by a foreign exchange loss of N153 billion resulting from the devaluation of the naira,” she said.
Also, the Managing Director, of Nigerian Breweries Plc, Mr Hans Essaadi, described the business recovery plan as strategic and vital for business continuity.
Essaadi noted that the tough business landscape characterised by double-digit inflation rates, Naira devaluation, foreign exchange challenges and diminished consumer spending had taken its toll on many businesses.
This, he said, was why the company had decided to further consolidate its business operations for efficient cost management and optimal use of resources for future sustainable growth.
“We recognise and regret the impact that the suspension of brewery operations in the two affected locations may have on our employees.
“We are committed to limiting the impact on our people as much as possible by exhausting all options available including the relocation and redistribution of employees to our other seven breweries, and providing strong support and severance packages to all those that become unavoidably affected.
“We are also committed to supporting our host communities in ways that ensure they continue to feel our presence.
“We remain wholly committed to having a positive impact on our host communities and our consumers; leveraging our strong supply chain footprint; excellent execution of our route to market strategy; and our rich portfolio of brands,” he said.
