International Breweries proposes plan to clear losses
AB InBev’s Nigeria-based subsidiary, International Breweries Plc, has revealed a plan that is set to eliminate its accumulated losses of NGN191.03 billion (£103.5 million).
The brewery, which is responsible for beer brands such as Budweiser, Trophy Lager and Hero Lager being available across Nigeria, saw a return to profitability in the 2025 financial year and has assured shareholders that its next moves will assist in restoring its ability to pay dividends.
In a notice filed with the Nigerian Exchange Limited (NGX), International Breweries’ proposal sets out two key steps including eliminating its negative retained earnings and returning excess capital to shareholders. However, the activity still remains subject to regulatory approval and confirmation by the Federal High Court.
Forming a plan
According to the beer company, despite returning to profitability, the business remained unable to distribute dividends primarily due to the accumulated losses of NGN191.032 billion that it still recorded at the end of the 2025 financial year. Now, however, the brewer has said that it has a plan to assist with this now.
The first stage would, according to reports from The Sun, involve applying part of the balance in its share premium account to assist in eliminating accumulated losses, but this would restore distributable reserves and would also re-establish International Breweries’ capacity to pay dividends in the future.
According to a statement from the company: “There will be no reduction in the number of shares in issue.”
The company has outlined that, following the elimination of the accumulated losses, it intends to reorganise the balance in the share premium account to facilitate a return of capital to shareholders.
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