Heineken-backed Nigerian Breweries to stop production at two sites
Nigerian Breweries, in which Heineken owns a majority stake, has taken the steps to suspend production at two of its plants.
Heineken posted a loss of N106bn ($92.9m) last year and has prepared moves to bear down on costs and shore up its balance sheet.
In a stock-exchange filing, the Nigerian Breweries did not name the two production sites that may see a “temporary suspension” of their output.
While approached by the media for further comments, Nigerian Breweries said it had invited unions to discuss the plans.
Hans Essaadi, the CEO of Nigerian Breweries’ 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 people as far as possible and providing strong support and severance packages to all affected.
“The tough business landscape characterised by double-digits inflation rates, naira devaluation, FX challenges and diminished consumer spend has taken its toll on many businesses, including ours.
“This is why we have taken the decision to further consolidate our business operations for efficient cost management. It will also improve our operational and financial stability and help return our business back to profitability, as we work together to secure the business for today and for future sustainable growth.”
Nigerian Breweries generated revenue of N550.64bn in 2023, up 8.9% on 2022, helped by “positive price mix”.
Heineken’s group beer volumes dropped 4.7% in 2023 and the Nigerian and Vietnamese markets “represented more than 60% of the decline”
