International Breweries to cut capital, clear N191bn losses, resume dividends
International Breweries Plc announced via a Nigerian Exchange Limited notice dated July 8, 2026 that it will restructure its share capital to eliminate N191.03 billion of accumulated losses and return excess capital to shareholders. The plan uses part of the Share Premium Account to offset the retained earnings deficit, aiming to restore distributable reserves and enable future dividend payments.
Despite returning to profitability in 2025 (pre‑tax profit N88.9 billion) and posting a N40.31 billion pre‑tax profit in Q1 2026, the company cannot declare dividends while the losses remain on its books. The move follows a trend among Nigerian listed firms using share premium accounts to clear deficits and unlock shareholder value.
Shareholders will vote on the proposal at the forthcoming Annual General Meeting; implementation requires regulatory approvals and Federal High Court confirmation. The exact amount to be returned will depend on the board’s decision, and investors should watch for the AGM date and voting outcome to gauge dividend prospects.