Shareholders of Vitafoam Nigeria Plc have approved a N125 million capital injection through a bonus share issue and endorsed a dividend payout of about N3.75 billion, reinforcing investor confidence in the foam manufacturer’s strong financial rebound and improved earnings performance.
The approvals were granted at the company’s 64th Annual General Meeting (AGM) held in Lagos, where shareholders authorised the capitalisation of N125,084,406 from retained earnings for the issuance of bonus shares to existing investors.
Under the approved arrangement, shareholders will receive one new ordinary share for every five shares currently held. The bonus shares will be distributed to investors whose names appeared in the company’s register of members at the close of business on February 6, 2026.
In addition to the bonus issue, shareholders also approved a final dividend of N3.00 per ordinary share of 50 kobo, translating to a total payout of approximately N3.75 billion, subject to applicable withholding tax.
The decisions form part of the company’s recapitalisation and shareholder value enhancement strategy following a remarkable financial performance in the 2025 financial year.
As part of the restructuring, shareholders further endorsed an increase in the company’s issued share capital from N625.42 million to N750.51 million. The increase will be achieved through the creation of 250,168,812 additional ordinary shares of 50 kobo each, which will rank pari passu with the existing shares.
Consequently, amendments were approved to the company’s Memorandum and Articles of Association to reflect the new capital structure. Following the changes, the issued share capital of the company will rise to N750,506,438 divided into 1,501,012,876 ordinary shares of 50 kobo each, up from the previous 1,250,844,064 shares.
The shareholder approvals come on the back of a significant turnaround in the company’s financial results for the year ended 2025.
According to the company’s financial statements, group turnover climbed to N111.3 billion, representing a 34.7 per cent increase compared with N82.6 billion recorded in 2024.
Even more striking was the rise in profitability. Profit before tax rose to N21.3 billion from N1.1 billion in the previous year, an increase of more than 1,830 per cent. Profit after tax also jumped significantly to N14.5 billion from N952 million in 2024, representing a rise of about 1,423 per cent.
The chairman of the company described the performance as a defining moment in the firm’s transformation agenda, noting that operational improvements and stronger market positioning were central to the turnaround.
“This exceptional performance marks a major milestone in our transformation journey. It was driven by improved production efficiency, stronger distribution, and disciplined cost management,” he said.
Management also attributed the performance to strategic adjustments implemented across the group’s operations.
The group managing director said the results showcase the resilience of the company’s brand and the loyalty of its customer base despite a challenging operating environment.
“Overall, the Group’s financial performance underscores the underlying strength of our brand, the loyalty of our customers, and the effectiveness of the strategic adjustments implemented,” he said.
With the latest approvals, investors will now look to see whether the company can sustain its growth momentum and consolidate the gains recorded in the past financial year.
