Vitafoam Nigeria Plc has reported a 46.6 percent increase in group profit after tax (PAT) to N21.31 billion for the financial year ended September 30, 2026, from N14.54 billion in the corresponding period of 2025, as improved cost management and stronger operating performance boosted the manufacturer’s earnings.
The performance was achieved on the back of a relatively moderate 5.4 percent growth in revenue, which increased to N117.36 billion from N111.38 billion, indicating that the company converted a greater proportion of its sales into profit during the period.
An analysis of the company’s unaudited consolidated financial statements shows that gross profit rose by 20.6 percent to N49.40 billion, compared with N40.96 billion in the previous financial year.
Consequently, gross profit margin improved to approximately 42.1 percent from 36.8 percent, reflecting better cost efficiency in the company’s production and sales operations.
Cost of sales declined by 3.5 percent to N67.96 billion from N70.42 billion, despite the increase in revenue, providing a significant boost to gross earnings.
Operating profit also recorded a strong performance, rising by 21.5 percent to N33.15 billion from N27.28 billion in the corresponding period of 2025.
However, administrative expenses increased by 24.9 percent to N13.02 billion from N10.42 billion, while distribution expenses rose by 8.9 percent to N4.45 billion from N4.08 billion, reflecting higher operating costs during the period.
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The improvement in operating performance was reinforced by a substantial reduction in finance costs, which declined to N973.84 million from N5.81 billion, representing an 83.2 percent decrease. This contributed significantly to the 51.2 percent growth in profit before taxation (PBT), which rose to N32.48 billion from N21.48 billion.
Following a tax charge of N11.16 billion, compared with N6.94 billion in the previous year, profit after taxation increased to N21.31 billion. Profit attributable to equity holders of the parent company stood at N19.91 billion, compared with N13.51 billion in 2025, representing a 47.3 percent increase.
In line with the improved earnings, earnings per share advanced to 1,591 kobo from 1,080 kobo, indicating stronger earnings attributable to shareholders. The company also disclosed expected earnings per share of 1,326 kobo after the allotment of bonus shares.
A review of the group’s fourth-quarter performance also indicates sustained earnings momentum. Revenue for the three months ended September 30, 2026, stood at N28.80 billion, marginally below the N29.09 billion recorded in the corresponding quarter of 2025. Despite the slight revenue decline, gross profit increased by 41.5 percent to N16.22 billion from N11.46 billion, while operating profit rose by 33 per cent to N11.74 billion from N8.82 billion.
Profit before taxation advanced by 59.1 percent to N11.71 billion from N7.36 billion, while quarterly profit after tax grew by 56.1 percent to N7.73 billion from N4.97 billion.
The quarterly performance reinforces the significance of improved production cost management in driving profitability, even in the face of relatively flat sales.
Beyond the earnings growth, Vitafoam’s cash flow statement indicates stronger cash generation from operating activities, with net operating cash flow rising to N25.70 billion from N14.63 billion in the preceding financial year.
The company’s cash and cash equivalents also increased to N20.71 billion at the end of September 2026, compared with N9.02 billion a year earlier.
Meanwhile, total group shareholders’ equity, including non-controlling interests, increased to N51.71 billion from N35.55 billion, representing a 45.5 percent improvement. Retained earnings also rose to N42.02 billion from N25.87 billion, reflecting the contribution of the year’s improved profitability, notwithstanding dividend distributions.
“The financial results position Vitafoam for a stronger earnings profile, supported by improved gross margins, lower finance costs and increased operating cash generation. For investors, however, the sustainability of the performance will depend on the company’s ability to maintain its improved cost structure, manage rising administrative and distribution expenses, sustain cash generation and translate stronger earnings into consistent shareholder returns.
“As Nigeria’s manufacturing sector continues to contend with input-cost pressures, purchasing-power constraints and operating uncertainties, Vitafoam’s ability to grow profitability faster than revenue provides an important indicator of its operational resilience”, says Vitafoam’s Commercial Director, Dahiru Gambo.
Iheanyi Nwachukwu, is a creative content writer with over two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Deputy Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.
