‘ Nigeria’s economic outlook optimistic’
The board of Vitafoam Nigeria Plc has expressed optimism on the outlook for the Nigerian economy citing structural fiscal and monetary reforms that have provided stable operating environment for companies
- Shareholders get N3.75b dividend, 250m bonus shares
The board of Vitafoam Nigeria Plc has expressed optimism on the outlook for the Nigerian economy citing structural fiscal and monetary reforms that have provided stable operating environment for companies to operate.
Speaking at the company’s annual general meeting in Lagos, Chairman, Vitafoam Nigeria Plc, Zakari Sada said the macroeconomic indicators suggest a gradual consolidation of growth, supported by fiscal and monetary realignments.
According to him, inflation rate, which has been declining, is expected to improve further as monetary policies take firmer effect and foreign exchange liquidity increases.
He however noted persisting challenges in the energy and logistics sectors as well as high cost of capital and constrained consumer purchasing power.
He expressed optimism that structural reforms in the energy sector should begin to ease cost pressure over the medium term.
“Within this environment, we will continue to deepen cost optimization, strengthened efficient sourcing, invest in innovation and product diversification, enhance operational resilience through automation and energy efficiency, and elevate our sustainability performance in line with global best practices,” Sada said.
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He pointed out that the performance of the company in 2025 represented a major turning point for the business.
According to him, the exceptional performance was a major milestone in the group’s transformation journey.
He said: “It was driven by improved production efficiency, stronger distribution, and disciplined cost management”.
Audited report and accounts of the group for the year ended September 30, 2025 had shown that turnover rose by 34.7 per cent from N82.6 billion in 2024 to N111.3 billion in 2025. Profit before tax leapt by 1,830 per cent to N21.3 billion in 2025 from N1.1 billion in 2024. Profit after tax also jumped by 1,423 per cent from N952 million to N14.5 billion.
Group Managing Director, Vitafoam Nigeria Plc, Taiwo Adeniyi, said the company has been positioned to benefit from emerging opportunities as the economy improves.
“For our company, the macroeconomic outlook presents both challenges and possibilities. While inflationary and input-cost pressures may persist, moderate Gross Domestic Product (GDP) growth and the potential easing of fiscal and foreign exchange constraints present opportunities for demand recovery, cost stabilization and improved consumer sentiment,” Adeniyi said.
He outlined that the group would implement strategies to leverage emerging opportunities while prudently managing the risks associated with the current operating environment.
He noted that the group’s 2025 performance 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,” Adeniyi said.
At the meeting, shareholders of the group approved the payment of a cash dividend of N3.75 billion and distribution of bonus shares of about 250.2 million shares as the foam manufacturing company witnessed a significant rebound in sales and profitability.
At the annual general meeting in Lagos, shareholders authorised the capitalisation of N125.084 million from retained earnings for the issuance of bonus shares to existing shareholders. The bonus shares will be distributed on the basis of 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.
Shareholders also approved a dividend of N3.75 billion, representing a dividend per share of N3.
As part of the recapitalisation programme, shareholders further endorsed an increase in the company’s issued share capital from N625.42 million to N750.51 million through the creation of 250.169 million 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 million divided into 1.501 billion ordinary shares of 50 kobo each, up from 1.251 billion shares previously.
