Shareholders of Vitafoam Nigeria Plc have approved a dividend payout of N3.75 billion and endorsed the issuance of bonus shares as the company reported improved financial performance for the 2025 financial year.
The approvals were granted during the company’s 64th Annual General Meeting held in Lagos.
At the meeting, shareholders authorised the capitalisation of N125.08 million from retained earnings for the issuance of bonus shares to existing investors.
The bonus shares will be distributed on the basis of one new ordinary share for every five shares held by shareholders whose names appeared on the company’s register at the close of business on February 6, 2026.
The resolution forms part of the company’s recapitalisation programme aimed at strengthening its capital base while rewarding investors.
Investors also approved a dividend of N3.00 per ordinary share of 50 kobo, translating to a total payout of about N3.75 billion, subject to applicable withholding tax.
As part of the recapitalisation process, shareholders further endorsed an increase in the company’s issued share capital from N625.42 million to N750.51 million.
This will be achieved through the creation of 250,168,812 additional ordinary shares of 50 kobo each, which will rank equally with the existing shares.
Following the adjustment, the company’s issued share capital will rise to N750,506,438 divided into 1,501,012,876 ordinary shares of 50 kobo each, compared to the previous 1,250,844,064 shares.
To reflect the new capital structure, shareholders also approved amendments to the company’s Memorandum and Articles of Association.
Financial Performance
The approvals followed strong financial results reported by the company for the 2025 financial year.
Vitafoam recorded a turnover of N111.3 billion, representing a 34.7 percent increase compared to N82.6 billion in 2024. Profit before tax rose to N21.3 billion from N1.1 billion recorded in the previous year.
Profit after tax also increased significantly to N14.5 billion, compared to N952 million in 2024.
Management Remarks
The chairman of the company described the performance as a major milestone in the firm’s transformation journey.
According to him, the results were driven by improved production efficiency, stronger distribution networks, and disciplined cost management.
The Group Managing Director also noted that the financial results reflect the strength of the company’s brand and the effectiveness of the strategic adjustments implemented by management.
