Two of Nigerian Breweries Plc’s nine breweries will temporarily cease operations as part of the company’s comprehensive restructuring plan, which was revealed recently.
The decision, which was made public in an official statement that Nairametrics was given access to, demonstrates the company’s commitment to investigating workable alternatives in order to minimise any negative effects on its employees.
One of these options is for workers to be moved and reassigned to the seven surviving breweries, with assistance and severance pay given to those who are inadvertently affected.
The company recently announced a Business Recovery Plan, indicating its intention to steer towards a sustainable and resilient future for all parties concerned. This step follows suit.
The statement, which is signed by Corporate Affairs Director Sade Morgan, emphasises how important it is to take this action in order to improve the company’s operational effectiveness, maintain financial stability, and open the door for a return to profitability in the face of the continuing difficult 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.
Nigerian Breweries Records N402 Billion Revenue in Q3 2023 Financial Report
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 reaffirmed that it had just notified the Nigerian Exchange Group (NGX) of its plan to use a rights offering to raise up to 600 billion in cash.
This calculated action is to strengthen the company’s balance sheet, especially in light of the N189 billion in net financing charges that were expended in 2023. The principal cause of the expenses was a N153 billion foreign exchange loss resulting from the depreciation of the naira.
Follow us on Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.