Vitafoam Shareholders Approve N125m Bonus Issue, Raise Capital To N750.5m

Shareholders of Vitafoam Nigeria Plc have approved the capitalisation of N125m from the company’s retained earnings for the issuance of bonus shares, a move that will raise the firm’s issued share capital to N750.5m.

The approval was granted at the company’s 64th Annual General Meeting (AGM) held in Lagos, where investors also endorsed amendments to the company’s Memorandum and Articles of Association to reflect the new capital structure.

Under the arrangement, the company will issue bonus shares to existing shareholders on the basis of one new ordinary share for every five shares held by investors whose names appeared in the register of members at the close of business on February 6, 2026.

As part of the recapitalisation exercise, shareholders authorised the creation of 250,168,812 additional ordinary shares of 50 kobo each, which will rank pari passu with the existing shares of the company.

Following the exercise, the company’s issued share capital will increase from N625.42m to N750.51m divided into 1,501,012,876 ordinary shares of 50 kobo each, compared with 1,250,844,064 shares previously in issue.

In addition to the capital restructuring, shareholders approved a dividend of N3.00 per ordinary share of 50 kobo, translating to a total dividend payout of about N3.75bn, subject to applicable withholding tax.

The approvals came on the back of a strong financial performance by the company for the 2025 financial year, during which the group recorded significant growth across key financial indicators.
The company reported turnover of N111.3bn , representing an increase of about 34.7 per cent from N82.6bn recorded in 2024.

Profitability also improved sharply during the period. Profit before tax rose to N21.3bn from N1.1bn , representing an increase of more than 1,830 per cent, while profit after tax climbed to N14.5bn from N952m , marking a growth of about 1,423 per cent.

Chairman of the company described the results as a significant milestone in the firm’s transformation journey, noting that the performance reflected improvements across operations and strategic execution.

According to him, the strong results were driven by enhanced production efficiency, stronger distribution networks and disciplined cost management.
The Group Managing Director also attributed the performance to the company’s ability to adapt to changing market conditions while leveraging the strength of its brand.

He said the results underscore the resilience of the company and the effectiveness of the strategic adjustments implemented across the business.