Breaking News: Nigerian Breweries PLC has received a direly needed lifeline from its parent company Heineken amidst its financial struggles, 9am News Nigeria can report. This lifeline comes in the form of interest free loans offered to Nigerian Breweries PLC by Heineken.
This occurrence was stated by Hans Essaadi, Managing Director of Nigerian Breweries PLC on 17 September 2024 at an event held to disseminate information about its Right Issue (RI) aimed at raising capital.
Mr. Uaboi Agbebaku, Secretary to the Nigerian Breweries PLC said the firm’s target is to raise the sum of N599 billion to deepen and broaden its investment in the Nigerian market and to stabilize its operations.
He said the critically needed funds would help to relieve financial pressures on the firm brought about mainly by the present Forex crisis.
He lamented that the present Forex crisis has greatly strained the company’s fortunes as reflected in its financial reports.
In statements made available to 9am News Nigeria
Hans Essaadi, Managing Director of Nigerian Breweries PLC said “Our FX losses are substantial, and resolving these will stabilize our profit and loss accounts”.
“We are working to reduce our bank debt, which will ultimately lower our interest burden and ease financial pressure”.
“Once inflation, interest rates, and other economic factors improve, we expect our results to reflect that”.
He further revealed that Heineken, the prime shareholder in Nigerian Breweries PLC with 67% of the company’s shares has suspended the collection of interest on loan to its Nigerian subsidiary in order to offer respite to the company and enable it pay its debts.
However the Nigerian Breweries PLC still recorded a massive revenue increase as reflected in its financial statements. It recorded a 72% revenue increase in H1 2024 compared to H1 2023. The problem though lies in its skyrocketing operational costs which has overshadowed most its gains, resulting in a 71% loss of revenue.
Further information
Further information gathered by Ogasabi of 9am News Nigeria show that although the Nigerian Breweries PLC once saw its shares fall to N20 per share in 2020 during the Covid pandemic, its value rose to N50 per share in 2022 but has fallen to N30 per share in 2024 due to economic downturns orchestrated by forex scarcity.
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