Shareholders of Vitafoam Nigeria Plc have approved a N125 million capital injection through a bonus share issue and endorsed a dividend payout of N3.75 billion.
The approvals were granted during the company’s 64th Annual General Meeting held in Lagos on Thursday. The decision reflects growing investor confidence in the company’s improving financial performance.
At the meeting, shareholders authorised the capitalisation of N125,084,406 from retained earnings to issue bonus shares to existing investors. The bonus shares will be distributed at a ratio of one new ordinary share for every five shares held by shareholders whose names appeared in the register of members as of February 6, 2026.
Investors also approved a dividend payment of N3.00 per ordinary share of 50 kobo. The payout translates to about N3.75 billion, subject to applicable withholding tax.
As part of the company’s recapitalisation programme, shareholders further endorsed an increase in the 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 existing shares.
To reflect the changes, amendments were also approved to the company’s Memorandum and Articles of Association. The new structure raises the issued share capital to N750,506,438, divided into 1,501,012,876 ordinary shares of 50 kobo each. Previously, the company had 1,250,844,064 shares in issue.
The approvals followed a strong financial performance by the company in the 2025 financial year.
Vitafoam recorded a turnover of N111.3 billion, representing a 34.7 percent increase from the N82.6 billion reported in 2024.
Profit before tax rose sharply to N21.3 billion from N1.1 billion, reflecting an increase of more than 1,830 percent. Profit after tax also surged to N14.5 billion, up from N952 million, representing a rise of about 1,423 percent.
Chairman of the company, Zakari Sada, described the results as a major turning point for the business.
“This exceptional performance marks a major milestone in our transformation journey. It was driven by improved production efficiency, stronger distribution, and disciplined cost management,” he said.
Group Managing Director Taiwo Adeniyi noted that the results highlight the resilience of the company’s brand and the success of its strategic initiatives.
“Overall, the Group’s financial performance underscores the underlying strength of our brand, the loyalty of our customers, and the effectiveness of the strategic adjustments implemented,” he said.
