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By Chinwendu Obienyi and Chukwuma Umeorah
The Board and Management of Nigerian Breweries Plc, has announced its decision to consolidate its business operations as part of its strategic recovery plans aimed at improving operational efficiency, financial stability and ensuring long-term sustainability.
This is coming as the company announced that there are ongoing plans for a re-organisation which includes temporary suspension of operations in two of its nine breweries.
The company emphasized its commitment to minimizing the impact on its workforce by exploring all feasible alternatives. These measures include; relocating and redistributing employees to the remaining seven breweries and offering support and severance packages to those that become unavoidably affected.
According to the company, following the recent announcement of its Business Recovery Plan, Nigerian Breweries Plc has indicated plans for a company-wide reorganisation aimed at securing a resilient and sustainable future for its stakeholders.
A statement signed by Sade Morgan, Corporate Affairs Director, NB Plc, noted that this move is essential to improve the company’s 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,” the company said.
Speaking on the development, Essaadi, while emphasizing the strategic importance of the business recovery plan for ensuring business continuity, said that the plan aims to consolidate business operations for efficient cost management and optimal use of resources.
“The decision to consolidate our business operations is a strategic move aimed at boosting our recovery plans and positioning NB Plc for long-term success. We are committed to navigating through the challenging business environment by focusing on operational efficiency, cost management, and optimal resource utilization. While we regret the impact on our employees and communities, we are taking proactive measures to minimize the impact and support our stakeholders during this transition”, he explained.
The company recalled that recently it notified the Nigerian Exchange Group (NGX) of its plan to raise capital of up to N600 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.
