International Breweries has proposed a share capital reorganisation to eliminate N191.03bn in accumulated losses, the first formal step toward resuming dividends after years without one. The AB InBev subsidiary filed the plan with the Nigerian Exchange on July 8.
The brewer will apply part of its Share Premium Account to absorb the deficit, without cutting its share count. The process falls under Section 131 of the Companies and Allied Matters Act, 2020. It still needs shareholder approval at the AGM and confirmation by the Federal High Court.
The losses trace to FX shocks and dollar shortages that hit the brewer between 2017 and 2025. International Breweries returned to profitability last year, posting a pre-tax profit of N88.9bn, a reversal from the N111.8bn loss booked in 2024. Investors reacted fast: shares jumped 10%, the maximum single-day gain the exchange allows, when the filing landed.
Pullout quote: “There will be no reduction in the number of shares in issue.” — International Breweries Plc, NGX filing, July 8, 2026.
A second phase follows once the losses clear. The board plans a further reduction of the Share Premium Account to return excess capital to shareholders on a pro-rata basis, with a qualification date still to be set. The brewer behind Budweiser, Trophy Lager and Hero Lager has gone without a dividend for years.
The filing lands as other Nigerian and regional brewers work through their own capital and ownership questions. Guinness Nigeria’s tightened governance ties under Tolaram ownership reflect a similar recalibration. Regional investors are still buying in regardless; Varun Beverages’ push into Kenya’s drinks market shows appetite for African beverage assets even as legacy balance sheets get cleaned up.
International Breweries said shareholders will receive a full Explanatory Note ahead of the AGM. Until the Federal High Court confirms the reorganisation and shareholders vote, the size and timing of any payout stay open. Company Secretary Temitope Oluwatosin cautioned investors to trade carefully in the stock while the process plays out.
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