The Nigerian Breweries Plc has announced a plan to temporarily shut two out of its nine production plants in Nigeria citing tough business climate due to the double-digit inflation rate, naira devaluation, FX challenges and diminished consumer spending.
The foremost beverage enterprise in Nigeria has announced that the brief shutdown was a component of its Business Recovery Plan, which entailed a comprehensive restructuring to enhance the company’s operational efficacy, fiscal steadiness, and facilitate a revival of profitability amidst the consistently demanding business landscape.
The company, in a statement signed by its Corporate Affairs Director, Sade Morgan, however highlighted its commitment to minimising the impact of the closure on its workforce by exploring all feasible alternatives.
Morgan highlighted such measures to include relocating and redistributing the company’s employees to the other seven breweries, and supporting those that will be unavoidably affected with severance packages.
The company noted that it had conveyed the decision through letters to the leadership of the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB) in accordance with labour requirements.
It disclosed that the letter through Grace Omo-Lamai, the company’s Human Resource Director, 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 those two breweries.
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“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.
Nigerian Breweries Plc reminded that it recently informed the Nigerian Exchange Group (NGX) of its plan to raise ₦600 billion capital via rights issue to restore 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.
Managing Director/CEO of Nigerian Breweries Plc, Hans Essaadi, had underscored the business recovery plan as strategic and vital for business continuity.