Nigerian Breweries Plc has unveiled its strategy for a comprehensive company restructuring, which involves the temporary halt of operations in two out of its nine breweries.
The decision, outlined in an official statement shared with Nairametrics, underscores the company’s dedication to mitigating any adverse effects on its workforce by exploring viable alternatives.
Among these alternatives is the relocation and redistribution of employees to the remaining seven breweries, alongside providing support and severance packages for those unavoidably impacted.
The company’s move comes on the heels of its recent announcement of a Business Recovery Plan, signaling its intent to navigate toward a resilient and sustainable future for all stakeholders involved.
Signed by Sade Morgan, Corporate Affairs Director, the statement highlights the necessity of this action to enhance the company’s operational efficiency, ensure financial stability, and pave the way for a return to profitability amidst the ongoing challenging business landscape.
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“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.
The company reiterated its recent notification to the Nigerian Exchange Group (NGX) regarding its intention to raise capital of up to ₦600 billion through a rights issue.
This strategic move aims to bolster the company’s balance sheet, particularly in response to the net finance expenses of N189 billion incurred in 2023. The expenses were primarily attributed to a foreign exchange loss of N153 billion, stemming from the devaluation of the naira.
