International Breweries launches plan to clear N191bn losses

International Breweries Plc has proposed a share capital reorganisation aimed at eliminating its accumulated losses of N191.03 billion and restoring its ability to pay dividends, following its return to profitability in the 2025 financial year.

The brewer, in a notice filed with the Nigerian Exchange Limited (NGX), said the proposal involves two key steps including eliminating its negative retained earnings and returning excess capital to shareholders. The transaction remains subject to regulatory approval and confirmation by the Federal High Court, as required under Section 131 of the Companies and Allied Matters Act (CAMA) 2020 (as amended).

The company explained that despite returning to profitability, it remains unable to distribute dividends because of the accumulated losses of N191.032 billion recorded at the end of the 2025 financial year.

It said the first stage of the reorganisation would involve applying part of the balance in its Share Premium Account to eliminate the accumulated losses, thereby restoring distributable reserves and re-establishing the company’s capacity to pay dividends from future profits.

According to the statement, “There will be no reduction in the number of shares in issue.” Following the elimination of the accumulated losses, International Breweries said it also intends to reorganise the balance in the Share Premium Account to facilitate a return of capital to shareholders.

The company said the amount payable to each ordinary shareholder would be distributed on a pro rata basis, with reference to the total amount approved for distribution from the Share Premium Account at a qualification date to be determined by the Board of Directors.

Shareholders will be required to vote on the proposed share capital reorganisation at the company’s forthcoming Annual General Meeting (AGM). It added that further details of the transaction would be contained in the explanatory note to be made available to shareholders before and during the AGM.

The filing also clarified that the transaction is a share capital reorganisation and not a reduction of share capital, correcting an earlier reference. It stated that the amendment was made because there would be no reduction in the company’s shares.

The proposal comes after International Breweries returned to profitability in the 2025 financial year, marking a turnaround from previous years when foreign exchange losses and rising finance costs weighed heavily on earnings. However, while profitability has improved, the accumulated losses have continued to prevent the company from declaring dividends under existing corporate regulations.