Nigerian Breweries unveils business recovery Plan

Ahead of Nigerian Breweries Plc Annual General Meeting (AGM) on April 26, 2024, the management of the company  recent unveiled the company business recovery plan.

Just as the company gives reasons for N600 billion right issue from existing shareholders.

Addressing the media at its Pre Annual General Meeting (AGM) press briefing in lagos, the Managing Director, of Mr Hans Essaadi, described the business recovery plan as strategic and vital for business continuity.

Essaadi explained that the tough business landscape characterised by double-digit inflation rates, Naira devaluation, foreign exchange challenges and diminished consumer spending had taken its toll on many businesses, which Nigerian Breweries is not an exception.

This, he said, was why the company had decided to further consolidate its business operations for efficient cost management and optimal use of resources for future sustainable growth.

Commenting further on the proppsed right issue, the Company Secretary Uaboi Agbebaku, explained that the parent company Heineken International has given their commitment to take up their 57% holding in Nigerian Breweries.

Responding to questions on the temporary suspension of operations in two of its nine breweries, he said  “We recognise and regret the impact that the suspension of brewery operations in the two affected locations may have on our employees”

“We are committed to limiting the impact on our people as much as possible by exhausting all options available including the relocation and redistribution of employees to our other seven breweries, and providing strong support and severance packages to all those that become unavoidably affected”.

Mrs Sade Morgan, Corporate Affairs Director,  talked about Nigerian Breweries sustainability activities noted that  “We are also committed to supporting our host communities in ways that ensure they continue to feel our presence”.

On his part the Marketing Director, Mr Emmanuel Oriakhi added that “We remain wholly committed to having a positive impact on our host communities and our consumers; leveraging our strong supply chain footprint; excellent execution of our route to market strategy; and our rich portfolio of brands,”

The finance director, Mr Bermardus Wessels Boer, while commenting on the financial, said the proposed right issue is 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.