Vitafoam Nigeria Plc has announced a significant shareholder reward package, proposing a one-for-five bonus share issue alongside a N3.00 dividend per share. These recommendations, stemming from a period of exceptional financial performance in 2025, are set for approval at the company’s 64th Annual General Meeting (AGM) scheduled for March 5, 2026, in Lagos. The move underscores the foam manufacturer’s robust recovery and commitment to enhancing shareholder value.
The proposed bonus issue involves capitalising N125.08 million from Vitafoam’s retained earnings to create 250,168,812 new ordinary shares, each valued at 50 kobo. Shareholders whose names appear on the company’s register as of February 6, 2025, will be eligible to receive one new share for every five existing shares they hold. The board views this as a strategic initiative to bolster the company’s capital structure and directly reward investors.
These newly issued shares will rank equally with existing shares in all aspects, with one notable exception: they will not qualify for the dividend declared for the 2025 financial year. This distinction ensures clarity for investors regarding the entitlements of both existing and bonus shares. The company’s directors have highlighted the bonus issue as a testament to its strong operational recovery and long-term commitment to its shareholder base.
Concurrently, Vitafoam’s directors are recommending a N3.00 dividend per share, which translates to a total payout of N4.62 billion. This represents a substantial 145% increase from the previous year, reflecting the company’s strengthened earnings base. If approved at the AGM, payments will be disbursed on March 5, 2026, to eligible shareholders registered by February 6, 2026, provided their e-dividend registration is complete.
The decision to offer both a significant bonus issue and a higher dividend directly correlates with Vitafoam’s stellar financial performance in the 2025 financial year. The company reported an extraordinary 1,775% surge in profit before tax (PBT), rising to N21.48 billion from N1.15 billion in 2024. Profit after tax (PAT) also experienced remarkable growth, climbing by 1,427% to N14.54 billion, showcasing a profound turnaround in profitability.
Management attributed these impressive results to a combination of strategic factors, including robust revenue expansion, effective pricing adjustments, and stringent cost controls across operations. Group revenue saw a 35% increase, reaching N111.38 billion, while basic earnings per share soared to N9.43, a significant improvement from a loss of 72 kobo recorded in the preceding year. This financial rejuvenation also saw total equity rise by 42% to N35.55 billion, with net assets per share increasing from N17 to N24.
At the company level, Vitafoam’s revenue grew by 33% to N97.40 billion, and its profit before tax rebounded dramatically to N17.49 billion, reversing a loss of N1.06 billion from the previous year. This strong performance underpins the proposed increase in the company’s issued share capital from N625.42 million to N750.51 million, representing 1.50 billion ordinary shares of 50 kobo each. This adjustment, subject to regulatory approvals and amendments to its Memorandum and Articles of Association, aims to bolster Vitafoam’s financial capacity for future expansion across its foam, bedding, and lifestyle product portfolios.
The company’s robust financial fundamentals have also resonated strongly in the stock market. As of September 30, 2025, Vitafoam’s shares closed at N79.80, marking a substantial 263% increase from N22 a year prior. By December 24, 2025, the share price had further escalated to N94.60, reflecting an impressive 311% year-to-date gain and positioning it as the 10th-best performing stock on the Nigerian Exchange.
Over the three months preceding December 24, 2025, Vitafoam shares were actively traded, with approximately 99.6 million units exchanging hands across 10,483 deals, valued at N8.56 billion. This heightened trading activity underscores investor confidence in the company’s strategic direction and its ability to sustain profitability. The turnaround from a loss position to solid earnings suggests that Vitafoam has successfully stabilised its core operations and strengthened its financial foundation.
Beyond the bonus issue and dividend, the upcoming AGM will address other routine business. This includes the presentation of the audited accounts for the financial year ended September 30, 2025, the re-election of directors, and the appointment of the Audit Committee. Shareholders will also vote on the approval of directors’ fees, the renewal of recurrent related-party transactions, and a review of severance compensation for retiring directors, aligning with Section 297 of the Companies and Allied Matters Act (CAMA) 2020.
Vitafoam’s remarkable recovery, driven by a resurgence in demand for its foam and bedding products, coupled with enhanced cost efficiency and improved capacity utilisation, has positioned the company for sustained growth. Despite challenges such as rising energy and raw material costs, the significant increase in pretax profit signals a substantial improvement in business fundamentals, enabling the company to maintain dividend payments, strengthen its balance sheet, and actively pursue new growth opportunities.
