Vitafoam Nigeria Proposes Capital Increase and Bonus Issue Following 2025 Recovery
Vitafoam intends to increase its issued share capital
Vitafoam Nigeria Plc has announced a strategic plan to increase its issued share capital to ₦750.5 million. The move is designed to strengthen the company’s capital base and reward its investors following a significant financial recovery in the 2025 fiscal year. The proposal will be presented for shareholder approval at the company’s 64th Annual General Meeting (AGM) scheduled for March 2026 in Lagos.
Capital Restructuring and Bonus Issue
According to a notice filed with the Nigerian Exchange (NGX), Vitafoam intends to increase its issued share capital from ₦625.42 million to ₦750.51 million. This expansion involves the creation of 250.17 million additional ordinary shares of 50 kobo each. Upon approval, the company’s total issued shares will rise from approximately 1.25 billion to 1.50 billion.
The board has proposed a bonus issue of one new ordinary share for every five shares held by existing stockholders. This capitalization issue will be funded by transferring ₦125.08 million from the company’s retained earnings. Shareholders registered as of 6 February 2026 will be eligible for the bonus, which will rank pari passu with existing shares, although they will not qualify for dividends for the financial year ended 30 September 2025.
2025 Financial Performance Analysis
The proposed capital adjustment follows a robust financial turnaround. For the financial year ended 30 September 2025, Vitafoam reported:
Profit Before Tax (PBT): ₦21.48 billion, a substantial increase from the ₦1.15 billion recorded in 2024.
Profit After Tax (PAT): ₦14.54 billion, up from ₦952 million in the previous year.
Revenue: ₦111.38 billion, representing a 35 percent growth attributed to improved pricing strategies and high demand in the bedding and foam segments.
Earnings Per Share (EPS): Improved to ₦9.43, recovering from a loss per share of 72 kobo in 2024.
Shareholder Returns and Strategic Outlook
In addition to the bonus shares, the Board of Directors has recommended a cash dividend of ₦3.00 per ordinary share. This dual-reward approach combining equity expansion with cash payouts reflects the company’s confidence in its operational efficiency and cost-management initiatives.
Management stated that the capital increase is intended to align Vitafoam’s equity structure with its current scale of operations. By capitalising retained earnings, the company is effectively repositioning its balance sheet to support sustainable growth without the immediate need to raise new funds from the capital market.
The development is a positive indicator for the Nigerian consumer goods sector, signaling that established manufacturing firms are successfully navigating macroeconomic headwinds through internal efficiencies and strategic market positioning. The finalized resolutions regarding the share capital increase and dividend payment are expected to be ratified during the upcoming March AGM.
