Vitafoam Nigeria Plc has published its unaudited results for the second quarter ended March 31, 2026, posting a pre-tax profit of N8.089 billion, up from N5.62 billion recorded in the corresponding period of 2025.

The performance lifted the company’s half-year pre-tax profit to N14.73 billion, representing a 49 per cent increase over H1 2025.

Profit after tax also strengthened in Q2, rising 38 per cent year-on-year to N5.349 billion.

This pushed half-year profit after tax to N9.637 billion, significantly higher than the N6.7 billion achieved in the first half of 2025.

A review of the financial statements shows that the impressive bottom-line growth was driven by a mix of favourable factors.

Finance costs fell significantly to N447 million in Q2 2026, down from N1.44 billion in Q1 2025, following a reduction in the company’s loan book from N9.3 billion to N3.3 billion, a decline of roughly N6 billion.

Revenue performance remained strong, climbing 13 per cent year-on-year to N34 billion in Q2 2026.

The growth was largely supported by local sales, which accounted for more than 96 per cent of total revenue.

However, faster growth in direct costs relative to revenue weighed on profitability, leading to a slight compression in margins. Gross profit margin declined to 33 per cent in Q2 2026, down from 34 per cent in the corresponding period of 2025.

Operating expenses rose moderately by 9 per cent year-on-year to N4.2 billion in Q2 2026, growing at a slower pace than gross profit.

As a result, operating profit increased by 19 per cent year-on-year to N8.33 billion, while operating margin improved by 5.19 percentage points to 24 per cent in Q2 2026.

Balance Sheet
Vitafoam’s total assets expanded by 1.53 per cent to N66.729 billion, driven mainly by property, plant and equipment valued at N15.8 billion, as well as an increase in cash and cash equivalents to N12 billion.

The higher cash balance likely supported growth in finance income, which rose to N233.731 million from N69.307 million recorded in Q2 2025.

On the equity side, total shareholders’ funds rose 13 per cent year-on-year to N40.043 billion, largely driven by an increase in retained earnings, which climbed to N31 billion.