Vitafoam Hikes Dividend as Other Gains Lift Profit

Vitafoam Nigeria Plc has raised its dividend payment after other income as well as a reduction in foreign exchange revaluation losses helped lift profit, which indicates investor will be smiling to bank.

The consumer goods giant posted a record profit after tax (PAT) of N14.53 billion in the year ended September 2025, which is 1,426.71 percent higher than 2024’s N952.19 million.

It is important to note that the growth at the bottom line was largely driven by other gains of N773.98 million in the period under review from a loss of N12.12 billion the previous year.

A breakdown of other gains shows sale of scrap items increased by 83.14 percent to N1.13 billion while foreign exchange loss dipped to N619.18 million from a deficit of N12.73 billion.  Of course, dividend income for the group during the year includes dividend received on quoted investment of N1.81 million from 2024 in N1.05 million.

Sales spiked by 34.78 percent to N111.37 billion as at year ended September 2025, from N82.63 billion the previous year.

The manufacturer of flexible, reconstituted, and rigid foam products hiked dividend by 186.17 percent to N3 for the year ended September 2025, from N1.05 the previous year.

Consumer goods firms have benefitted from a hike in the price of key products to help fend off the effects of rising input costs brought on by imported inflation in the aftermath of the unification of the foreign exchange rate so as to spur investment.

The bold reforms of the current administration is yielding fruit as there has been a relative stability in the foreign exchange market that led to the reduction of exceptional losses, which helped strengthened the balance sheet.

An impressive earnings results combined with a propitious future have underpinned investors’ optimism as they continue to swoop on the shares of these firms who are now the best performer on the NGXASI index.

Vitafoam shares have gained 311.30 percent so far this year, outperforming the NGXASI index 49 percent gans.

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