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Vitafoam Nigeria Plc has announced a 1-for-5 bonus share issue alongside a proposed dividend of N3.00 per share, as the company moves to reward shareholders following a sharp rebound in earnings and strengthen its capital base ahead of its 64th Annual General Meeting (AGM) scheduled for March 5, 2026, in Lagos.
The bonus issue, subject to shareholder approval, will involve the capitalisation of N125.08 million from retained earnings to issue 250,168,812 new ordinary shares of 50 kobo each. The new shares will be allotted to shareholders whose names appear on the company’s register as of February 6, 2025, on the basis of one new share for every five shares held.
According to the notice of meeting, the bonus shares will rank pari passu with existing shares in all respects, except that they will not qualify for the dividend declared for the 2025 financial year. As part of the exercise, Vitafoam is proposing to increase its issued share capital from N625.42 million to N750.51 million, representing 1.50 billion ordinary shares of 50 kobo each. The adjustment will require amendments to the company’s Memorandum and Articles of Association, subject to regulatory approvals.
The company said the conversion of retained earnings into share capital would strengthen its balance sheet and enhance its capacity to support future expansion across its foam, bedding and lifestyle product segments. Directors noted that the move reflects the company’s improved financial position after a period of operational recovery.
In addition to the bonus issue, the board is recommending a cash dividend of N3.00 per share, translating to a total payout of N4.62 billion, representing a 145 per cent increase over the previous year. If approved, the dividend will be paid on March 5, 2026, to shareholders on the register as of February 6, 2026, subject to completion of e-dividend registration.
Other items to be considered at the AGM include the presentation of the audited financial statements for the year ended September 30, 2025, the re-election of directors, appointment of members of the Audit Committee and approval of directors’ remuneration. Shareholders will also vote on the renewal of recurrent related-party transactions and the review of severance compensation for retiring directors in line with the Companies and Allied Matters Act (CAMA) 2020.
The bonus issue and dividend proposal follow a strong financial performance by the company in the 2025 financial year. Vitafoam recorded a 1,775 per cent increase in profit before tax, rising to N21.48 billion from N1.15 billion in the previous year, while profit after tax grew by 1,427 per cent to N14.54 billion.
Group revenue rose by 35 per cent to N111.38 billion, supported by higher sales volumes and pricing adjustments, while basic earnings per share improved to N9.43 from a loss of 72 kobo in 2024. Total equity increased by 42 per cent to N35.55 billion, with net assets per share rising to N24 from N17.
At the company level, revenue grew by 33 per cent to N97.40 billion, while profit before tax climbed to N17.49 billion, reversing a loss of N1.06 billion recorded in the prior year.
The improved earnings performance has also reflected in the company’s share price on the Nigerian Exchange. Vitafoam’s stock closed at N79.80 as of September 30, 2025, up from N22 a year earlier. By December 24, 2025, the share price had risen to N94.60, representing a year-to-date gain of 311 per cent and placing the stock among the top performers on the exchange.
Market data showed that over the past three months, Vitafoam traded 99.6 million shares in 10,483 deals, valued at N8.56 billion.
The company attributed its earnings recovery to stronger demand for mattresses and related products, improved capacity utilisation and tighter cost management, despite pressures from energy and raw material costs.
Management said the return to profitability indicates that core operations have stabilised and the earnings base has been strengthened.
