Blab Business
International Breweries Plc Unveils Plan to Eliminate NGN191 bn Accumulated Losses
International Breweries Plc, the Nigerian subsidiary of global brewer AB InBev, has filed a proposal with the Nigerian Exchange Limited (NGX) to wipe out its accumulated losses of NGN191.03 billion (about £103.5 million). The plan, which is still pending regulatory approval and confirmation by the Federal High Court, aims to restore distributable reserves and enable future dividend payments.
The company returned to profitability in the 2025 financial year, reporting a post‑tax profit of NGN50.91 billion on revenue of NGN619.04 billion. Despite the turnaround, International Breweries could not declare a dividend because its balance sheet still carried negative retained earnings of NGN191.032 billion at the end of 2025. The proposed restructuring seeks to eliminate that deficit.
Under the proposal, the company will use part of the balance in its share premium account to offset the accumulated losses. This move would convert the negative retained earnings into distributable reserves, thereby restoring the company’s capacity to pay dividends. The company has stated that the plan will not involve a reduction in the number of shares in issue.
After the loss elimination, International Breweries intends to reorganise the remaining share premium balance to facilitate a return of capital to shareholders. The reorganisation would be carried out through a share capital reduction, a common corporate restructuring tool in Nigeria that allows a company to write off excess capital and return funds to equity holders.
The proposal was filed with NGX on 13 July 2026. According to reports from The Sun, the share premium account will be adjusted in two stages: first to eliminate the accumulated losses, and second to redistribute excess capital. The company’s statement confirms that no share reduction will occur.
International Breweries has a long history in Nigeria. It began production in 1978 and was listed on the Nigerian Stock Exchange in 1994. The company operates several breweries across the country and markets well‑known brands such as Budweiser, Trophy Lager and Hero Lager. In 2024, the company recorded a loss of NGN113.61 billion, marking its seventh consecutive year of losses. The 2025 profit marked a significant improvement.
AB InBev, the parent company, is the world’s largest brewer, with a portfolio of over 630 brands in 150 countries. International Breweries’ turnaround is part of AB InBev’s broader strategy to strengthen its African operations.
The regulatory approval process for share capital reductions in Nigeria requires clearance from the Securities and Exchange Commission and confirmation by the Federal High Court. Until those approvals are obtained, the restructuring plan remains a proposal.
If approved, the plan would allow International Breweries to restore its ability to pay dividends to shareholders and could improve investor confidence in the company’s financial health. The company’s next steps will involve filing the necessary documents with the court and the regulatory authorities.
The proposal comes at a time when the Nigerian beer market is recovering from the impact of the COVID‑19 pandemic and the economic slowdown that followed. International Breweries’ ability to return capital to shareholders could serve as a benchmark for other Nigerian breweries facing similar financial challenges.
In summary, International Breweries Plc has laid out a two‑stage plan to eliminate accumulated losses of NGN191 billion and return excess capital to shareholders. The plan, filed with NGX and pending court confirmation, will not reduce the number of shares in issue. The outcome of the regulatory process will determine when the company can resume dividend payments and further strengthen its balance sheet.
The company returned to profitability in the 2025 financial year, reporting a post‑tax profit of NGN50.91 billion on revenue of NGN619.04 billion. Despite the turnaround, International Breweries could not declare a dividend because its balance sheet still carried negative retained earnings of NGN191.032 billion at the end of 2025. The proposed restructuring seeks to eliminate that deficit.
Under the proposal, the company will use part of the balance in its share premium account to offset the accumulated losses. This move would convert the negative retained earnings into distributable reserves, thereby restoring the company’s capacity to pay dividends. The company has stated that the plan will not involve a reduction in the number of shares in issue.
After the loss elimination, International Breweries intends to reorganise the remaining share premium balance to facilitate a return of capital to shareholders. The reorganisation would be carried out through a share capital reduction, a common corporate restructuring tool in Nigeria that allows a company to write off excess capital and return funds to equity holders.
The proposal was filed with NGX on 13 July 2026. According to reports from The Sun, the share premium account will be adjusted in two stages: first to eliminate the accumulated losses, and second to redistribute excess capital. The company’s statement confirms that no share reduction will occur.
International Breweries has a long history in Nigeria. It began production in 1978 and was listed on the Nigerian Stock Exchange in 1994. The company operates several breweries across the country and markets well‑known brands such as Budweiser, Trophy Lager and Hero Lager. In 2024, the company recorded a loss of NGN113.61 billion, marking its seventh consecutive year of losses. The 2025 profit marked a significant improvement.
AB InBev, the parent company, is the world’s largest brewer, with a portfolio of over 630 brands in 150 countries. International Breweries’ turnaround is part of AB InBev’s broader strategy to strengthen its African operations.
The regulatory approval process for share capital reductions in Nigeria requires clearance from the Securities and Exchange Commission and confirmation by the Federal High Court. Until those approvals are obtained, the restructuring plan remains a proposal.
If approved, the plan would allow International Breweries to restore its ability to pay dividends to shareholders and could improve investor confidence in the company’s financial health. The company’s next steps will involve filing the necessary documents with the court and the regulatory authorities.
The proposal comes at a time when the Nigerian beer market is recovering from the impact of the COVID‑19 pandemic and the economic slowdown that followed. International Breweries’ ability to return capital to shareholders could serve as a benchmark for other Nigerian breweries facing similar financial challenges.
In summary, International Breweries Plc has laid out a two‑stage plan to eliminate accumulated losses of NGN191 billion and return excess capital to shareholders. The plan, filed with NGX and pending court confirmation, will not reduce the number of shares in issue. The outcome of the regulatory process will determine when the company can resume dividend payments and further strengthen its balance sheet.
