International Breweries Plc has announced plans to restructure its share capital, a move designed to eliminate accumulated losses totaling N191.03 billion as of the end of the 2025 financial year. This initiative aims to restore distributable reserves and enable the company to pay dividends to shareholders in the future.
The proposal was communicated 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), stated that the restructuring would involve eliminating negative retained earnings and returning excess capital to shareholders.
Despite returning to profitability, International Breweries has been unable to declare dividends due to these substantial accumulated losses. To address this, the company plans to apply a portion of its Share Premium Account to offset the retained earnings deficit.
The company stated, “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.” This action is expected to restore positive retained earnings and re-establish the company’s capacity to pay dividends from future profits.
The proposed share capital restructuring follows 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.
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. This turnaround was supported by stronger revenue growth and a significant reduction in foreign exchange-related losses.
The company 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, marking a 15% increase from N35.07 billion recorded in the corresponding period of 2025.
Revenue for Q1 2026 rose by 2.9% to N178.71 billion from N173.63 billion a year earlier. Improved cost efficiency and stronger gross margins further supported the increase in profitability during this period.
Shareholders will vote on the proposed capital reduction at the 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 emphasized that the restructuring aims to strengthen its balance sheet, enhance investor confidence, and position the company for sustainable dividend payments in the future. This move also reflects a broader trend among Nigerian listed companies utilizing share premium accounts to eliminate accumulated deficits and unlock value for shareholders.
