International Breweries Seeks Share Capital Reduction to Clear N191bn Losses

International Breweries Plc has proposed a share capital reduction aimed at eliminating its accumulated losses of N191.03 billion and restoring its ability to pay dividends to shareholders in the future.

The brewer disclosed the plan in a notice to the Nigerian Exchange (NGX), shareholders and other stakeholders on July 8, 2026, stating that the proposed transaction would involve the reconstruction of the company’s share capital through the elimination of negative retained earnings and the return of excess capital to shareholders.

According to the company, the transaction will be executed in line with 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 that although it has returned to profitability, it remains unable to distribute dividends because of accumulated losses standing at N191.03 billion as of the 2025 financial year.

To address this, the company plans to utilise a portion of the balance in its share premium account to offset the accumulated losses. The move is expected to restore distributable reserves and re-establish the company’s capacity to pay dividends from future earnings.

Following the proposed clean-up of its balance sheet, International Breweries also intends to undertake a further reduction of its share premium account to facilitate a return of capital to shareholders. The amount to be distributed will be determined on a pro-rata basis, depending on the total sum approved by the board for distribution.

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

The proposal comes as listed companies continue to explore balance-sheet restructuring measures to strengthen shareholder value and improve their ability to reward investors through dividends.

International Breweries, a subsidiary of global brewing giant Anheuser-Busch InBev, has in recent years undertaken several capital restructuring initiatives as it worked to improve profitability amid challenging economic conditions and rising operating costs in Nigeria.