Nigerian Breweries to shut down

Job cuts are a strong possibility among the “operational efficiency measures” to be adopted by the company in the days ahead

Beer-maker Nigerian Breweries will undertake a company-wide rejig of its operations in response to a host of financial and operational difficulties, the company said Tuesday in a note to the Nigerian Exchange Limited.

The operational concerns include a record foreign exchange loss last year, which is leaving it with no option but to close down two of its nine plants.

The hard choice becomes necessary to reposition the Nigerian subsidiary of Heineken Brouwerijen B.V. for a sustainable future favourable to stakeholders.

A net loss on foreign exchange transactions summing up to N153.3 billion set Nigerian Breweries up for its biggest loss after tax last year since it began operations 77 years ago in the country.

Nearly half of the company’s input costs, which includes the cash spent on raw materials, is contributed by importation.

The net loss of N106.3 billion posted in 2023 resulted from “a combination of challenging economic factors ranging from heightened operational costs, continued pressure on consumer disposable income, escalating inflation rates, FX volatility, amongst others,” the company said.

Labour groups including National Union of Food, Beverage and Tobacco Employees as well as the Food Beverage and Tobacco Senior Staff Association have been notified of the move to halt operations temporarily at the two plants, according to the document.