Job cuts are a strong possibility among the "operational efficiency measures" to be adopted by the company in the days ahead
Beer-maker
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
A net loss on foreign exchange transactions summing up to N153.3 billion set
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.
Job cuts are a strong possibility among the "operational efficiency measures" to be adopted by the company in the days ahead, with talks centring on the implications of that move already arranged with the two unions.
"We recognize and regret the impact that the suspension of brewery operations in the two affected locations may have on our employees," said
"We are committed to limiting the impact on people as far as possible and providing strong support and severance packages to all affected."
Towards raising fresh capital that could help restore life to the cash-strapped brewer, a rights issue is under consideration to enable the management source cash from current shareholders in exchange for new shares.
Attention will shift to the remaining seven manufacturing plants with a view to putting their production capacity to greater use.
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