Vitafoam Nigeria Plc has introduced a 1-for-5 bonus share situation along with a proposed N3.00 dividend per share distribution forward of its sixty fourth Annual Basic Assembly (AGM) slated for March 5, 2026, in Lagos.
The bonus situation, which has been proposed for shareholder approval, entails the capitalisation of N125.08 million from retained earnings to situation 250,168,812 new extraordinary shares of fifty kobo every.
The shares might be allotted to traders whose names appeared on the corporate’s register as of February 6, 2026, on the premise of one new share for each 5 present shares held.
In accordance with the discover of assembly within the firm’s monetary assertion filed with the Nigerian Trade (NGX), the brand new shares will rank pari passu with present shares in all respects, besides that they won’t qualify for the dividend declared for the 2025 monetary 12 months.
The board described the bonus situation as a strategic transfer aimed toward strengthening the corporate’s capital construction whereas offering direct worth to shareholders following a 12 months of remarkable monetary efficiency.
What the corporate is saying
The corporate is proposing a decision to extend Vitafoam’s issued share capital from N625.42 million to N750.51 million, representing 1.50 billion extraordinary shares of fifty kobo every. This adjustment would require amendments to the corporate’s Memorandum and Articles of Affiliation and is topic to regulatory approval.
The corporate famous that the capital elevate—achieved by means of the conversion of retained earnings into share capital—will bolster Vitafoam’s monetary capability because it positions for future enlargement throughout its foam, bedding, and way of life product portfolios.
Administrators additional emphasised that the initiative underscores the corporate’s long-term dedication to rewarding shareholders after a interval of sturdy operational restoration.
Dividend suggestion and Different AGM Enterprise
Alongside the bonus situation, Vitafoam’s administrators are recommending a N3.00 dividend per share, amounting to a complete payout of N4.62 billion, a rise of 145%. If permitted, funds might be made on March 5, 2026 to shareholders on the register as at February 6, 2026, offered they’ve accomplished the e-dividend registration course of.
The AGM may also take into account routine enterprise such because the presentation of the audited accounts for the monetary 12 months ended September 30, 2025, the re-election of administrators, appointment of the Audit Committee, and approval of administrators’ charges. Shareholders may also vote on the renewal of recurrent related-party transactions and the evaluate of severance compensation for retiring administrators consistent with Part 297 of the Firms and Allied Issues Act (CAMA) 2020.
Monetary Efficiency:
Vitafoam’s resolution to situation a bonus and better dividend displays the corporate’s stellar efficiency within the 2025 monetary 12 months. The froth maker posted a 1,775% surge in revenue earlier than tax, rising from N1.15 billion in 2024 to N21.48 billion in 2025. Revenue after tax grew by 1,427% to N14.54 billion, which administration attributed to income enlargement, pricing changes, and tighter value controls.
Group income elevated by 35% to N111.38 billion, whereas fundamental earnings per share climbed to N9.43, in comparison with a lack of 72 kobo in 2024.
Complete fairness rose 42% to N35.554 billion, and web belongings per share elevated from N17 to N24. The dividend per share rose 186% to N3.00, reflecting the corporate’s strengthened earnings base.
Latest inventory efficiency on NGX
Vitafoam’s shares have responded strongly to the corporate’s improved fundamentals. As at September 30, 2025, the inventory closed at N79.80, up 263% from N22 a 12 months earlier.
By December 24, 2025, the share value had risen additional to N94.60, representing a 311% year-to-date acquire, rating it the Tenth-best performer on the Nigerian Trade.
Over the previous three months alone, the inventory traded 99.6 million shares in 10,483 offers, valued at N8.56 billion.
What you need to know
Vitafoam Nigeria rose from a pointy decline in revenue prior 12 months to a robust pre-tax revenue development on the power of a restoration in demand for its foam and bedding merchandise, and improved value effectivity throughout its operations.
Improved capability utilisation and stronger demand for mattresses and associated merchandise additionally contributed to the earnings rebound, regardless of rising vitality and uncooked materials prices.
The turnaround from losses to stable profitability on the firm stage means that Vitafoam has stabilised its core operations and strengthened its earnings base.
Vitafoam’s 1,775% enhance in pretax revenue indicators a considerable enchancment in enterprise fundamentals and positions the corporate to maintain dividend funds, strengthen its stability sheet, and pursue development alternatives.
The 1-for-5 bonus situation, coupled with the next dividend, underscores the corporate’s confidence in its development outlook and its strengthened monetary footing.
Be First to Comment