Nigerian Breweries Plc, a leading beverage company in Nigeria, has made a significant announcement that is set to reshape its financial future. The company revealed its plans to raise up to N600bn through a Rights Issue, as stated in a corporate notice filed with the Nigerian Exchange Limited.
The decision to raise capital was made at a recent Board of Directors meeting, with the aim of addressing the challenges posed by the devaluation of the naira and high borrowing costs. The company highlighted that the proceeds from the Rights Issue will help reduce its debt burden and strengthen its balance sheet, ultimately leading to a healthier financial position.
Despite facing a N153bn foreign exchange loss due to the devaluation of the naira, Nigerian Breweries Plc managed to grow its revenue by 8.9% in the year ended December 2023. However, a significant increase in net finance expenses resulted in a loss of N106.31bn for the company, compared to a gain in the previous year.
Looking ahead, the company’s Board of Directors expressed confidence in its ability to navigate the challenging economic environment. With over 77 years of experience operating in Nigeria, Nigerian Breweries Plc is committed to leveraging its strong portfolio, supply chain network, and dedicated workforce to drive long-term value for its shareholders and stakeholders.
Shareholders will have the opportunity to vote on the proposed Rights Issue and an increase in the company’s share capital at the upcoming Annual General Meeting. The board’s strategic decisions and commitment to sustainability indicate a proactive approach to overcoming current market challenges and ensuring a profitable future for Nigerian Breweries Plc.
