Nigerian Breweries Plc has announced plans for a company-wide reorganization, including the temporary suspension of operations in two out of its nine breweries. The company expressed its commitment to minimizing the impact on its workforce by exploring all possible alternatives.
Nigerian Breweries outlined measures, including relocating and redistributing employees to the remaining seven breweries and offering support and severance packages to those affected. These actions are part of the company’s Business Recovery Plan, which aims to secure a resilient and sustainable future in the face of challenging business conditions.
In letters addressed to the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB), the company informed both unions of its proposed plan, which includes operational efficiency measures and a company-wide reorganization involving the temporary suspension of operations in two breweries.
The decision to reorganize comes after the company notified the Nigerian Exchange Group (NGX) of its plan to raise capital of up to ₦600 billion through a rights issue. This move aims to restore the company’s balance sheet following significant net finance expenses incurred in 2023, primarily due to foreign exchange losses from naira devaluation.
Managing Director/CEO of Nigerian Breweries Plc, Hans Essaadi, described the Business Recovery Plan as strategic for ensuring business continuity amidst a challenging operating environment characterized by inflation, currency devaluation, FX challenges, and reduced consumer spending. Essaadi emphasized the company’s commitment to limiting the impact on employees and supporting host communities.
Nigerian Breweries also highlighted its recent acquisition of an 80% stake in Distell Wines and Spirits Limited, demonstrating its resilient and forward-thinking strategy to create long-term value for shareholders and stakeholders.
The Business Recovery Plan includes a rights issue and a company-wide reorganization involving the temporary suspension of two breweries and optimization of production capacity in the remaining seven breweries. Some of these have received significant capital investment in recent years.
