Vitafoam Nigeria Plc has reported a 46.6% increase in profit after tax to N21.31 billion for the financial year ended September 30, 2026, compared with N14.54 billion recorded in the corresponding period of 2025.
The foam and bedding manufacturer disclosed this in its unaudited financial statements, which showed that revenue increased by 5.4% to N117.36 billion from N111.38 billion a year earlier.
Profit before tax rose by 51.2% to N32.48 billion from N21.48 billion, supported by improved operating margins and a significant reduction in finance costs.
Gross profit increased by 20.6% to N49.40 billion from N40.96 billion as the company recorded lower production costs despite higher revenue.
Cost of sales declined by 3.5% to N67.96 billion from N70.42 billion, helping Vitafoam improve its gross profit margin to 42.1% from 36.8% in the previous financial year.
However, administrative expenses increased by 24.9% to N13.02 billion, compared with N10.42 billion recorded in 2025.
Distribution expenses also rose by 8.9% to N4.45 billion from N4.08 billion, reflecting higher costs associated with the company’s operations.
Despite the increase in operating expenses, Vitafoam recorded a 21.5% increase in operating profit to N33.15 billion from N27.28 billion.
The company’s financial performance received additional support from a sharp reduction in borrowing costs.
Finance costs declined by 83.2% to N973.84 million from N5.81 billion, while finance income increased to N300.01 million from N10.91 million.
The reduction in financing expenses contributed significantly to the company’s improved profitability, with profit before tax growing faster than revenue.
Tax expenses, however, increased by 60.8% to N11.16 billion from N6.94 billion, limiting the growth recorded in profit after tax.
Earnings attributable to shareholders of the parent company increased by 47.3% to N19.91 billion from N13.51 billion in the previous financial year.
Basic earnings per share rose to 1,591 kobo, equivalent to N15.91, from 1,080 kobo, or N10.80, in 2025.
Meanwhile, Vitafoam’s fourth-quarter performance showed a stronger improvement in profitability despite a marginal decline in revenue.
Revenue for the three months ended September 30, 2026, declined by 1% to N28.80 billion from N29.09 billion in the corresponding quarter of 2025.
However, profit after tax increased by 55.6% to N7.73 billion from N4.97 billion, while profit before tax rose by 59.1% to N11.71 billion from N7.36 billion.
Operating profit for the quarter also increased by 33% to N11.74 billion from N8.82 billion.
The results showed that Vitafoam sustained earnings growth through improved gross margins and lower financing costs, even as revenue growth remained modest.
The company also disclosed an expected earnings per share of N13.26 following the allotment of bonus shares, compared with its reported basic earnings per share of N15.91.
