Vitafoam Nigeria Plc has reported a remarkable turnaround in its unaudited financial results for the six months ended March 31, 2025. The Group moved from a loss position in the prior year to delivering ₦6.7 billion in profit, signaling strong top-line momentum and operational recovery across its operations.
🔑 Key Highlights: Q1 2025 vs Q1 2024 (Group)
Metric H1 2025 H1 2024 % Change Revenue ₦56.71 billion ₦41.29 billion ▲ 37.4% Gross Profit ₦19.05 billion ₦14.11 billion ▲ 35.0% Operating Profit ₦12.36 billion (₦3.83 billion) ▲ Turnaround Profit Before Tax (PBT) ₦9.88 billion (₦5.08 billion) ▲ Turnaround Net Profit ₦6.70 billion (₦5.58 billion) ▲ Turnaround EPS (Basic & Diluted) 501.54 kobo (467.63) kobo ▲ Turnaround
📊 Performance Drivers
🔹 Revenue Growth
- Group revenue rose by ₦15.4 billion year-on-year, fueled by robust product demand across key markets.
- The parent company also recorded a strong 33.4% revenue increase to ₦50.05 billion from ₦37.53 billion.
🔹 Cost Management
- Cost of sales grew in line with revenue, but gross margins remained stable (~33.6%), implying efficient production and input cost controls.
🔹 Operating Profit Recovery
- From a ₦3.83 billion loss in H1 2024, the Group swung to ₦12.36 billion in operating profit.
- The turnaround is largely attributed to:
- Lower administrative expenses (₦5.16B vs ₦16.74B)
- Higher other income (₦605M vs ₦300M)
- Improved distribution efficiency
🔹 Tax and Bottom Line
- Despite a higher tax charge (₦3.18B), net profit reached ₦6.70 billion, a sharp reversal from last year’s loss.
- The company also posted a total comprehensive income of ₦6.45 billion despite a ₦258 million foreign exchange loss on translation of foreign operations.
🧮 Balance Sheet Implications & EPS
- Earnings per share rebounded to 501.54 kobo, from a loss of 467.63 kobo per share, restoring shareholder confidence.
- The result reflects strong earnings leverage, efficient cost containment, and improved capital allocation.
📌 Outlook and Investor Consideration
This strong first-half performance sets the tone for a promising full-year outlook for Vitafoam Nigeria Plc. Management’s focus on cost optimization and revenue expansion appears to be delivering results. The return to profitability, coupled with rising demand and better margins, positions the company to deliver improved shareholder value in the coming quarters.
While FX volatility and input cost inflation remain risks, the H1 2025 result offers a compelling case for cautious optimism, especially for long-term investors seeking recovery-backed value in Nigeria’s manufacturing sector.
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