International Breweries moves to erase N191bn losses, plans capital return to shareholders

INTERNATIONAL Breweries Plc has unveiled plans to reduce its share capital by eliminating accumulated losses and returning excess capital to shareholders, a move aimed at restoring its ability to pay dividends after years of financial strain.

In a notice to the Nigerian Exchange dated July 8, 2026, the brewer said the proposed capital reconstruction 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.

The company said the transaction will be carried out in two stages. First, it will apply part of the balance in its share premium account to wipe out accumulated losses of N191.03 billion recorded as of the 2025 financial year. Second, it will undertake a further reduction of the share premium account to enable a return of excess capital to shareholders.

International Breweries explained that although it returned to profitability in 2025, the huge accumulated losses on its books have prevented it from declaring dividends. By eliminating the negative retained earnings, the company said it would restore distributable reserves and regain the capacity to pay dividends from future profits.

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Following the write-off of the accumulated losses, shareholders will receive a capital distribution on a pro rata basis. The amount payable per ordinary share will depend on the total sum approved by the board for distribution from the share premium account.

The brewer said shareholders will vote on the proposed share capital reduction at its forthcoming annual general meeting (AGM).

The proposed restructuring comes as International Breweries seeks to strengthen its balance sheet after several years of losses that followed major expansion investments and rising finance costs. The company, a subsidiary of global brewing giant Anheuser-Busch InBev, has recently returned to profitability, paving the way for the latest capital restructuring initiative.

If approved by shareholders, regulators and the Federal High Court, the exercise is expected to improve the company’s financial position while enhancing its ability to reward shareholders through future dividend payments.

Backstory

In 2025, the brewer posted its first full-year profit in seven years, marking a major turnaround for Nigeria’s second-largest brewer after prolonged foreign-exchange shocks kept it in the red.

It reported a profit after tax of N63.34 billion for the year ended December 2025, reversing a N113.61 billion loss recorded in 2024, according to its unaudited financials on the Nigerian Exchange (NGX).

The return to profitability was driven mainly by a sharp drop in foreign exchange losses, following a period of relative stability in the naira. For years, heavy currency devaluations had wiped out the company’s operating gains, even when beer sales were growing.

However, it still has accumulated losses due to several years of being in the red.