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Vitafoam Nigeria Plc‘s share price attained a 3-year high on Wednesday, thanks to the significantly-positive half-year 2019 results posted by the mattress-maker.

The result, alongside future growth potentials, attracted investors to the company’s stock which gained 9.82% after trading 848,540 units of shares and closing at N4.25.

Performance Details Explained: The gain implies that Vitafoam shareholders had their stake increase by N725 million year-to-date to a market capitalisation of N5.316 billion.

The demand for Vitafoam‘s shares further pushed up the NSE All Share Index, which has been performing positively in recent days, thanks to the bullish run of newly-listed MTN Nigeria Communications Plc.

But the stock’s rise seems to have only been temporary because as of Thursday, May 23rd, Vitafoam traded only 264,460 units of shares. The share price, however, remains N4.25.

Vitafoam’s Half-Year 2019 Results: The result reveals that Profit After Tax leaped by 150% to N774.7 million, up from N309.7 million recorded in HY 2018.

Income from the company’s local market, during the period, rose by 21% to N12.66 billion from N10.50 billion in 2018. Similarly, revenue from the market outside Nigeria surged by 29% to N272.6 million from N210.9 recorded in 2018. This represents a 20.7% rise in overall revenue for the period under review.

Increase in other income recorded by about 129% to N151.7 million further impacted the company’s profit. This comprised gains from asset sales, investment, sales of scrap, rentals unclaimed dividends and exchange gains.

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The shareholders should be impressed: For the company’s shareholders, the result is rather commendable when compared to previous performances. It should be noted that the company had been made consecutive losses in the past three years. It posted losses after tax of N71.9 million, N32 million, and N127 million in 2015, 2016 and 2017 respectively.

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Nevertheless, the performance for the 9 months ended June 2018 placed the company on the path of recovery. Its PAT stood at N515 million in 2018 compared to N133 million in 2017, which reflected in the current result.

Company’s Expansion Plans: Vitafoam had introduced eight new products into the market at the beginning of 2019. The new products would help enlarge the firm’s revenue base enhance customer’s healthy living and boost shareholder value, management said.


Vita Pearl, one of the latest offering, is a pillow that regulates temperature and moisturises the body. Others include assorted customised beds, sofas, Trifold mat for leisure, reading chairs, three specialised mattresses including orthopedic and classic and various polyurethane sandwich panel steels.

Vitafoam has committed more fund to advertising in a move to attract more customers. Advertising spending rose by 86% from N64.6 million in half-year 2018 to N121.2 million in half year 2019.

Yet, it should be noted that competition remains stiff. Therefore, the company should be on its toes if it intends to ensure continued growth.


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