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Vitafoam Nigeria Plc, a leading producer of rigid and flexible foam products partly owned by Nigerian industrialist Samuel Bolarinde, closed its 2025 financial year with its strongest result on record, as improved pricing, higher sales volumes and sharply lower foreign exchange losses combined to lift profit to historic levels.
Profit jumps on sales, FX relief
The Lagos-based manufacturer of rigid and flexible foam products reported a profit after tax of N14.54 billion ($10.16 million) for the year ended Sept. 30, 2025, according to its audited financial statements. That represents a 1,427 percent increase from N952.2 million ($665,600) in the 2024 financial year, reflecting stronger operating performance and a more stable naira.
The surge in earnings is linked to higher revenue from core products such as foams, mattresses and pillows, alongside a steep reduction in foreign exchange losses. Currency-related losses fell to N619.3 million ($433,000) during the year, compared with N12.72 billion ($8.9 million) a year earlier, when the naira’s depreciation against the U.S. dollar weighed heavily on results.
Revenue jumps as Nigeria, region grow
Revenue for the year climbed to N111.38 billion ($77.9 million), up from N82.64 billion ($57.7 million) in 2024. Sales of foam products accounted for the bulk of that increase, rising to N109.9 billion ($76.8 million) from N81.55 billion ($57 million). Revenue from furniture and other products also improved, growing to N1.51 billion ($1.05 million) from N1.08 billion ($750,000).
Nigeria remained its main market, generating N106.5 billion ($74.51 million) in revenue, compared with N79.2 billion ($55.41 million) a year earlier. Sales outside Nigeria rose to N4.91 billion ($3.43 million) from N3.44 billion ($2.4 million), reflecting gains from regional operations.
That growth outside Nigeria is being driven in part by Vitafoam’s factory in Sierra Leone, which supplies foam products to the local market and exports to neighboring countries including Guinea and Liberia. The company said demand from the facility has continued to build as distribution improves and brand awareness increases across the sub-region.
Vitafoam earnings lift assets, dividend
Vitafoam, partly owned by Nigerian industrialist Samuel Bolarinde, operates one of the largest foam manufacturing and distribution networks in West Africa. Bolarinde, who holds a 12.03 percent stake, has previously served on the boards of Wema Bank Plc and Nigerian Breweries Plc and remains involved in shaping the company’s long-term direction.
The strong earnings translated into a firmer balance sheet. Total assets rose to N65.3 billion ($45.6 million) as of Sept. 30, 2025, from N52.2 billion ($36.5 million) a year earlier. Shareholders’ equity increased to N35.5 billion from N25 billion, while retained earnings climbed to N25.9 billion ($18.11 million) from N14.07 billion ($9.84 million).
On the back of its impressive financial results, the board declared a final dividend of N3 ($0.0021) per share, subject to withholding tax and shareholder approval. The dividend will be paid on March 5, 2026, to shareholders on the register as of Feb. 6, 2026.
