Shareholders of Vitafoam Nigeria Plc have approved a N125m capital injection through a bonus share issue and endorsed a N3.75bn dividend payout.
This signalled a strong investor confidence in the company’s improving financial performance.
The approvals were granted at the company’s Annual General Meeting on Thursday, where shareholders authorised the capitalisation of N125,084,406 from retained earnings to issue bonus shares to existing investors.
The bonus shares would be distributed based on one new ordinary share for every five shares held by shareholders whose names appeared in the register of members at the close of business on February 6, 2026.
Investors at the company’s 64th AGM, held in Lagos, also approved a dividend of N3.00 per ordinary share of 50 kobo, translating into a total payout of approximately N3.75bn, subject to applicable withholding tax.
As part of the recapitalisation program, shareholders further endorsed an increase in the company’s issued share capital from N625.42m to N750.51m through the creation of 250,168,812 additional ordinary shares of 50 kobo each, which will rank pari passu with existing shares.
Consequently, amendments were approved to the company’s Memorandum and Articles of Association to reflect the new capital structure, raising the issued share capital to N750,506,438 divided into 1,501,012,876 ordinary shares of 50 kobo each, up from 1,250,844,064 shares previously.
The approvals followed a strong financial performance by the company in the 2025 financial year.
The group recorded turnover of N111.3bn, representing an increase of about 34.7% from N82.6bn in 2024.
Profit before tax surged to N21.3bn from N1.1bn, reflecting an increase of over 1,830%, while profit after tax jumped to N14.5bn from N952m, representing a rise of about 1,423%.
Chairman of the company, Mr 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 Mr Taiwo Adeniyi said the company’s results reflected the resilience of the brand and the effectiveness of its strategic adjustments.
“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.
