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L-R, Mr. Nicolaas Vervlede, MD/CEO, Nigerian Breweries
Plc ., Mr. Oscar Onyema, CEO of Nigerian Stock Exchange (NSE) and Chief Kola
Jamodu, Chairman Nigerian Breweries Plc. during the visit of the Board of
Nigerian Breweries Plc. to the floor of the Nigerian Stock Exchange for the
‘bell ringing’ ceremony of its successful merger with Consolidated Breweries
Plc.
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The management of Nigerian Breweries Plc. on Monday
February 9, 2014 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, Chief Kola Jamodu, CFR 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, Chief Kolawole Jamodu,
CFR, 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.
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