Vitafoam Nigeria Plc has recorded its highest performance in five years, with profit after tax increasing to N14.5 billion, an increase of 1,407 per cent from the N952 million posted in 2024, a significant turnaround after several years of stressed earnings.
BusinessDay's review of the foam and bedding manufacturer's recent financial performance shows that profit after tax was N4.6 billion in 2021, declining slightly to N4.5 billion in 2022 and N4.4 billion in 2023. However, profitability declined to N952 million in 2024 as rising input costs, forex volatility and weak consumer demand significantly impacted margins.
Strong profitability was supported, supported by strong revenue growth. Vitafoam's revenue has grown steadily over the past five years, from N35.4 billion in 2021 to N46.3 billion in 2022. The past three years have been positive for the company, which grew from N52.9 billion in 2023 to N82.6 billion in 2024, before rising to N111.4 billion in 2025.
The steady increase in revenues indicates continued demand for Vitafoam's products in its core markets, as well as the impact of price adjustments implemented to offset higher production costs.
Also read: Vitafoam's pre-tax profit increases by 1,751%
The latest results are likely to boost investor confidence in the stock, especially after the sharp earnings decline recorded in 2024. With revenues at a five-year high and profitability restored, analysts say Vitafoam is better positioned to weather ongoing economic uncertainties, although risks related to inflation, exchange rate volatility and consumer spending remain.
With the share price at N94 on 29 December, stakeholders acquired a share capital of ₹625,422. Vitafoam started the year with a share price of N23 and has since gained 311 per cent on that price valuation, ranking it 10th on the NGX in terms of year-to-date performance.
Vitafoam operates in a sector that is under considerable pressure due to rising energy costs, high inflation and currency depreciation, which have increased the cost of raw materials, many of which are imported. Despite these headwinds, the company's 2025 performance places it among the outstanding performers in Nigeria's consumer goods and manufacturing sector.
Taiwo Adeniyi, Group Managing Director and CEO of Vitafoam, commented: “This remarkable performance reflects our unwavering commitment to operational excellence, cost efficiency and sustainable value creation for shareholders.
“We are pleased with our strong performance this year, particularly the significant increase in operating profit and significant improvement in cost efficiency. These results confirm the success of our strategic initiatives focused on financial discipline, brand strength and long-term value creation.”
“Our continued investment in operational efficiency, product innovation and sustainable energy solutions positions Vitafoam for continued growth in the year ahead,” he said.
As Nigeria's manufacturing sector adjusts to a volatile macroeconomic outlook, Vitafoam's performance to 2025 highlights the potential for well-managed companies to bounce back strongly even after severe earnings pressure.
