International Breweries Plc has unveiled plans to restructure its share capital as part of a broader effort to eliminate accumulated losses, strengthen its balance sheet and restore its ability to pay dividends to shareholders.
In a regulatory filing, the brewer disclosed that it intends to implement a share capital reduction through a two-stage process involving the elimination of negative retained earnings and the return of excess capital to shareholders, subject to regulatory approvals and confirmation by the Federal High Court.
The proposed restructuring comes despite the company’s return to profitability. International Breweries said accumulated losses of ₦191.03 billion as of the end of the 2025 financial year continue to prevent it from declaring dividends under existing corporate regulations.
To address this, the company plans to utilise part of its Share Premium Account to offset the accumulated deficit. Management said the move would restore distributable reserves, enabling the company to declare dividends from future earnings once other statutory requirements are met.
Following the write-off of accumulated losses, International Breweries also intends to undertake a further reduction in its Share Premium Account to facilitate a return of capital to shareholders.
According to the company, the capital repayment will be distributed to eligible shareholders on a pro-rata basis, with the amount receivable per ordinary share to be determined after the Board approves the total sum to be returned.
The proposed transaction will be carried out under Section 131 of the Companies and Allied Matters Act (CAMA) 2020, and remains subject to approvals from the relevant regulators as well as confirmation by the Federal High Court.
Shareholders will consider and vote on the proposed share capital reduction at the company’s forthcoming Annual General Meeting (AGM).
The initiative represents a significant balance sheet restructuring aimed at improving the company’s financial flexibility. By eliminating historical losses, International Breweries would remove a key constraint on future dividend payments while creating a stronger capital structure for long-term growth.
International Breweries, a member of the AB InBev Group, has been implementing measures to improve profitability and operational efficiency amid changing market conditions in Nigeria’s consumer goods sector.