Nigerian Breweries Plc (NB Plc) has indicated plans for company-wide reorganisation as part of strategic recovery plan which entails the temporary shutting down of two out of its nine breweries in Nigeria.
Following the recent announcement of its business recovery
plan, the conglomerate which is a member of the HEINEKEN Group and Nigeria’s
pioneer and largest brewing company indicated plans for a company-wide
reorganisation aimed at securing a resilient and sustainable future for its
stakeholders.
The company said the move is essential to improve its
operational efficiency, financial stability and enable a return of the business
to profitability, in the face of the persistently challenging business
environment.
In letters signed by the company’s Human Resource 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 includes the temporary suspension of operations in two of
its nine breweries.
As a result, and in accordance with labour requirements, the
Company invited the Unions to discussions on the implications of the proposed
measures.
It would be recalled that the company recently notified the
Nigerian Exchange Group (NGX) of its plan to raise capital of up to ₦600
billion (Six Hundred billion naira) by way of a Rights Issue, 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.
Speaking on these developments, Managing Director/CEO
Nigerian Breweries Plc, Hans Essaadi described the business recovery plan as
strategic and vital for business continuity:
“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”.
“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 across the Lager, Stout, Malt, Soft drinks, and Energy
drinks categories; and more recently, Wines and Spirits with the acquisition of
Distell”, he added.
The Nigerian Breweries’ business recovery plan includes a
Rights Issue and a company-wide reorganisation exercise which includes
temporary suspension of two out of its nine breweries in the country and an
optimisation of production capacity in the other seven breweries, some of which
have received significant capital investment in recent years.
The company reaffirmed its commitment to the long-term
future of Nigeria and “stands as a cornerstone of Nigeria’s beverage
industry.”With over 77 years of operations, the company said it would continue
to demonstrate its enduring commitment to the Nigerian market and its people.
Incorporated in 1946 as “Nigerian Brewery Limited,” NB Plc
made history in June 1949 when the first bottle of STAR lager beer rolled out
of its Lagos brewery bottling line.
Today, it has a rich portfolio of 21 high-quality brands,
including iconic brands like Heineken, Desperados, Maltina, Life, Amstel Malta,
Gulder, Fayrouz, and Legend produced from nine breweries and distributed
nationwide.
NB Plc recently added to its portfolio with the acquisition
of an 80% business stake in Distell Wines and Spirits Limited, a local business
in the wines and spirits category, as a demonstration of its resilient and
forward-thinking strategy to deliver long-term value creation for its
shareholders and other stakeholders.
0 comments:
Post a Comment