Mattress manufacturer Vitafoam has turned the tables resoundingly on the performance woes that hammered operating profit and caused earnings to tank to its lowest in six years in 2024.
Post-tax profit for the year ended September 2025 leaped more than 15 times to catapult the maker of foam products, beddings and home & workplace furniture to a record N14.5 billion, its latest financial report showed.
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The turnaround, more of a reward for cutting back expenses than growing sales, came about as the company trimmed down foreign exchange loss by 95.1 per cent, enabling it to post N774 million in other gains. That compares to other losses of N12.1 billion a year ago.
In 2024, Vitafoam’s bottom line took a hit, following a sharp devaluation of naira, its reporting currency, with adverse implications for the finances of the company, which buys the larger part of its raw materials in dollar and also imports machinery and spare parts.
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Apart from its base in Nigeria, it operates in Ghana and recently set up a factory in Sierra Leone, from which it ships finished goods to regional markets like Liberia and Guinea.
Sales from outside Nigeria contributed 4.4 per cent of the revenue for the review period, which at N111.4 billion, was 34.8 per cent higher than a year ago.
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Finance costs moderated by 14.2 per cent as a result of a drop in the interest paid on loans and overdraft as well as a decline in the interest paid on lease.
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Profit before tax climbed 1,775.5 per cent to N21.5 billion, while profit after tax jumped to N14.5 billion from N952.2 million, marking a 1,426.7 per cent growth.
The company announced in a separate document on Monday a cash reward plan that will pay shareholders a total dividend of N3.8 billion, equivalent to N3 per share. Another incentive in the form of a scrip issue of one new share for every five held by shareholders by 6 February 2026 is also on the cards.
The stock has yielded 311 per cent this year.
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