The management of Nigerian Breweries Plc. on Monday paid an official visit to the Nigerian Stock Exchange to reassure investors and other stakeholders of its commitment to enhance operational efficiencies and maximize value for all investors of the enlarged company.
According to the Chairman of the company, Kola Jamodu, who led the management of Nigerian Breweries Plc. they were at the Exchange to formally introduce the enlarged company management to the Nigerian Stock Exchange and the investing public.
The new Nigerian Breweries Plc has 11 breweries strategically spread across the nation, two malting plants and 19 brands including the lagers – Heineken, Star, Gulder, ‘33’ Export, Goldberg, More and Life; The Stouts- Legend Extra stout, Turbo King and Williams Dark Ale. The non-alcoholic malt drinks – Maltina, Amstel Malta, Malta Gold, Hi Malt, and Maltex. Other brands in the company portfolio are; – Fayrouz, Breezers, Ace Passion and Climax Energy drink.
In his remarks, Kolawole Jamodu, Chairman of the Board of Directors of Nigerian Breweries restated the company’s resolve to increase wealth for shareholders and other stakeholders. “This is expected to be achieved through major cost savings in the areas of interest expenses, distribution/administrative cost among other operating activities where duplication will be eliminated. Expenses such as annual general meetings, board of directors’ fees and communication expenses to shareholders will be reduced,” he said.
Other major benefits accruable from the merger also include cost saving from the consolidation of supply and distribution networks of both companies as a result of improved operational efficiencies arising from integrated operations. The products of both companies will be manufactured more efficiently through their combined operational capacities.
Significant cost saving is targeted by distributing products and selling the enlarged product portfolio of the new company across the entire combined sales and distribution network of the enlarged company. The enlarged company is expected to extend market leadership, accelerate revenue growth and expand profit capacity.
The legacy companies have maintained stable growth in sales revenue and profitability in the past five years. The merger of Nigerian Breweries and Consolidated Breweries is also a boost to the equities market, as former shareholders of Consolidated Breweries Plc., which was not listed in the Nigerian Stock Exchange [NSE], now have the opportunity to trade their shares on the floor of NSE. This will improve the liquidity of the stocks and increase market capitalization of the exchange.
