Nigerian Breweries Plc has announced its plan for a comprehensive reorganization, involving the temporary halting of operations in two out of its nine breweries.
This move aims to ensure a resilient and sustainable future amidst challenging market conditions, as outlined in its Business Recovery Plan.
Sade Morgan, Corporate Affairs Director, emphasized the company’s dedication to minimizing the impact on its workforce and exploring viable alternatives.
“We are committed to supporting our employees through this transition, including relocating and redistributing them to our remaining facilities,” Morgan stated.
The company’s decision was communicated to the National Union of Food, Beverage and Tobacco Employees and the Food Beverage and Tobacco Senior Staff Association. Nigerian Breweries invited both unions for discussions on the implications of the proposed measures.
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Managing Director/CEO of Nigerian Breweries Plc, Hans Essaadi, emphasised the necessity of the Business Recovery Plan amid a challenging economic environment.
“We recognize the impact of the suspension on our employees and are committed to limiting its effects,” Essaadi reassured.
The company disclosed its plan to raise capital of up to ₦600 billion through a rights issue, aiming to restore its balance sheet following significant finance expenses incurred in 2023.
Essaadi described the current business environment as challenging, marked by inflation, currency devaluation, and reduced consumer spending.
“We remain committed to our consumers and host communities. Our strategic approach involves leveraging our supply chain, portfolio of brands, and recent acquisitions like Distell Wines and Spirits Limited,” Essaadi emphasized.
Nigerian Breweries’ Business Recovery Plan entails a company-wide reorganization, optimizing production capacity across its breweries. Despite the temporary suspension in two locations, the company aims for sustained growth and long-term value creation for shareholders and stakeholders alike.