Vitafoam bonus and dividend approved as shareholders endorse N125m capital injection and N3.75bn payout after record profits

Shareholders of Vitafoam Nigeria Plc have approved a N125 million capital injection through a bonus share issue and endorsed a N3.75 billion dividend payout, signalling strong investor confidence in the company’s improving financial performance.

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The approvals were granted at the company’s 64th Annual General Meeting, held in Lagos, where shareholders authorised the capitalisation of N125,084,406 from retained earnings to issue bonus shares to existing investors.

The bonus shares will be distributed on a ratio of one new ordinary share for every five shares held as at February 6, 2026.

Investors also approved a dividend of N3.00 per ordinary share of 50 kobo, totalling approximately N3.75 billion, subject to applicable withholding tax.

The company’s issued share capital will rise from N625.42 million to N750.51 million, reflecting the creation of 250,168,812 additional ordinary shares, ranking pari passu with existing shares.

Amendments to the Memorandum and Articles of Association were also ratified to reflect the new capital structure.

The group recorded turnover of N111.3 billion, an increase of about 34.7 percent from N82.6 billion in 2024.

Profit before tax surged to N21.3 billion from N1.1 billion, while profit after tax rose to N14.5 billion from N952 million, representing a jump of 1,423 percent.

Chairman Zakari Sada described the results as a milestone in the company’s transformation journey.

“This exceptional performance marks a major turning point for the business, driven by improved production efficiency, stronger distribution, and disciplined cost management,” he said.

Group Managing Director Taiwo Adeniyi highlighted the resilience of the Vitafoam brand. “The results underscore the loyalty of our customers and the effectiveness of strategic adjustments implemented,” he added.

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The approvals signal strong confidence from investors and reinforce Vitafoam’s position as a leading manufacturer in Nigeria’s foam and bedding sector.