Nigerian Breweries (NB) Plc says the internal transformation process carried out in 2018 with a high one–off financial cost impact is expected to bring about cost savings impact in 2019.
The company listed the transformation processes as including aggressively pursuing the elimination of bad costs thereby freeing up money to be reinvented for business growth; a robust sales and distribution system that will drive brand penetration and profitability; and a balanced product portfolio in all categories we the company chose to operate
Meanwhile, the brewing giant said that it is now at about 57 per cent of its 2020 target for local sourcing of raw material for production, a measure design to further reduce cost.
Speaking at the 2018 Pre-AGM media briefing in Lagos, yesterday, Chairman, Board of Directors of the company, Chief Kolawole Jamodu said: “During the year under review , we undertook a review of our internal processes and ways of working through a simplification project. Following from that project, we commenced a transformation process that is aimed at increasing our agility as an organization thereby helping us to respond faster to changing market dynamics.”
“In line with objective of being an agile organization, a refreshed and reorganization exercise was carried out in 2018 with a high one-off financial cost impact but with cost savings impact expected in the course of 2019.”
Managing Director, Mr Jordi Borrut Bel, said that for the full year 2018 report, the company recorded a turnover of N324 billion compared to N345 billion in 2017 and that operating profits declined from N57 billion to N37 billion, due to higher Excise Duties and other operating costs.