International Breweries proposes share capital reduction to eliminate N191 billion losses

International Breweries Plc has announced plans to restructure its share capital as part of efforts to eliminate accumulated losses of up to N191 billion, restore distributable reserves, and pave the way for future dividend payments to shareholders.

The proposal was disclosed in a notice to the Nigerian Exchange Limited (NGX) dated July 8, 2026, and signed by the Company Secretary, Temitope Oluwatosin.

The brewer, a subsidiary of Anheuser-Busch InBev (AB InBev), said the proposed restructuring will involve the elimination of negative retained earnings and the return of excess capital to shareholders.

What they are saying

Despite returning to profitability, International Breweries said it remains unable to declare dividends because it still carries accumulated losses of N191.03 billion as of the end of the 2025 financial year.

To address the situation, the company plans to apply part of its Share Premium Account to offset the retained earnings deficit.

• “International Breweries Plc hereby notifies Nigerian Exchange Limited, our esteemed shareholders and stakeholders that the Company is proposing to reconstruct the Company’s share capital by way of: (i) eliminating negative retained earnings; and (ii) return of excess capital,” the company stated.
• “Despite the return to profitability, International Breweries remains unable to distribute dividends due to accumulated losses of N191,032,749,000 as at FY 2025. The Company proposes to apply a portion of the balance in the Share Premium Account to eliminate the accumulated losses.”

The move is expected to restore positive retained earnings and re-establish the company’s capacity to pay dividends from future profits.

According to the company, the distribution will be made on a pro-rata basis, with the amount payable dependent on the value approved by the Board of Directors for release from the Share Premium Account.

Get up to speed

The proposed share capital restructuring comes after a significant improvement in the company’s financial performance.

• In its audited 2024 financial statements, International Breweries reported a pre-tax loss of N111.8 billion, representing a 14.96% increase from the N97.2 billion loss recorded in 2023.
• The loss was driven largely by rising operating costs, higher expenses, and substantial foreign exchange losses.

However, the brewer staged a strong recovery in 2025, posting a pre-tax profit of N88.9 billion compared to the previous year’s loss. The turnaround was supported by stronger revenue growth and a significant reduction in foreign exchange-related losses.

More insights

The company said shareholders will vote on the proposed capital reduction at its forthcoming Annual General Meeting (AGM).

The transaction will be implemented under Section 131 of the Companies and Allied Matters Act (CAMA) 2020, subject to regulatory approvals and confirmation by the Federal High Court.

International Breweries said the restructuring is aimed at strengthening its balance sheet, enhancing investor confidence, and positioning the company for sustainable dividend payments in the future.

The move also reflects a broader trend among Nigerian listed companies that are increasingly using share premium accounts to eliminate accumulated deficits and unlock value for shareholders.

What you should know

The brewer has maintained its positive earnings momentum into 2026.

International Breweries reported a pre-tax profit of N40.31 billion in the first quarter of 2026, representing a 15% increase from N35.07 billion recorded in the corresponding period of 2025.

Revenue rose by 2.9% to N178.71 billion from N173.63 billion a year earlier, while improved cost efficiency and stronger gross margins supported the increase in profitability.