Vitafoam Shareholders Approve N3.75bn Dividend, Bonus Share Issue

Shareholders of Vitafoam Nigeria Plc have approved a final dividend of N3.00 per ordinary share of 50 kobo at the company’s 64th Annual General Meeting held in Lagos.

The dividend payment, subject to withholding tax, amounts to about N3.75bn.

In addition, shareholders endorsed a proposal to convert N125m from the company’s retained earnings into bonus shares for distribution to existing investors.

Under the arrangement, shareholders will receive one new ordinary share for every five shares held as of the qualifying date earlier in the year.

The company stated that the dividend and bonus issue reflect its commitment to delivering sustained value to shareholders.

During the meeting, investors also approved an increase in the company’s issued share capital from N625.42m to N750.1m.

The increase will be implemented through the creation of 250,168,812 additional ordinary shares of 50 kobo each, which will rank equally with the company’s existing shares.

Before the approval, the company had 1,250,844,064 ordinary shares in issue, giving it a market capitalisation of about N142.9bn based on a share price of N114.3.

Following the capital expansion, the company’s market value is estimated to have increased to roughly N171.5bn.

Shareholders also approved amendments to the company’s Memorandum and Articles of Association to reflect the revised capital structure.

The development follows a strong performance by the company on the Nigerian Exchange in 2025, when the stock delivered a 300 per cent return to investors.

Trading volumes also increased significantly, with more than 404 million shares exchanged during the year compared with 141 million shares in the previous year.

The upward momentum has continued into 2026, with the company’s share price rising by over 49 per cent and surpassing the N100 mark earlier in the year.

In its audited financial results for the year ended September 2025, the company reported revenue of N111.3bn, up from N82.6bn in the previous year.

Sales of foam products accounted for about 98.6 per cent of total revenue, while furniture and other products made up the remainder.

Pretax profit rose sharply to N21.4bn from N1.14bn in 2024, while retained earnings increased by more than 83 per cent to N25.8bn.