Vitafoam Nigerian Plc has released its unaudited Q2 2026 results for the period ended March 31, 2026, reporting a pre-tax profit of N8.089 billion compared to the N5.62 billion reported in the same period last year.
This took the company’s half-year pre-tax profit to N14.73 billion, 49% higher than what the company made in H1 2025.
Similarly, a stronger growth in profit after tax in Q2, hitting N5.349; up 38% YoY, drove the H1 profit to N9.637 billion, almost half of the H1 2025 profit of N6.7 billion.
Key Highlights (Q2 2026 vs Q2 2025)
- Revenue: N34.079 billion, +13.14% YoY
- Cost of Sales: N22.721 billion, +14.78% YoY
- Gross Profit: N11.358 billion, +9.99% YoY
- Operating expenses: N4.201 billion; +9.13% YoY
- Operating Profit: N8.333 billion, +19.01% YoY
- Earnings per share: N3.98, +35.37% YoY
- Total Assets: N66.729 billion +1.53%
- Retained Earnings: N30.994 billion, +19.81%
- Total Equity: N40.043 billion +12.63%
What is driving the numbers
A cursory review of the statements shows that strong bottom-line performance was driven by a combination of factors.
- There was a significant drop in finance cost, from N1.44 billion in Q1 2025 to N447 million in Q2 2026. This can be attributed to a drop in the loan book to N3.3 billion from N9.3 billion, resulting in a reduction of about N6 billion.
- The topline performance was also good with revenue hitting N34 billion; up 13% YoY compared to Q2 2025 numbers, driven by local sales, which accounted for over 96% of revenue.
However, due to the faster growth in direct costs compared to revenue, the margin was pressured as gross profit margin dropped to 33% compared to 34% in Q2 2025.
Operating expenses
Operating expenses for Q2 2026 grew moderately by 9% to N4.2 billion, slightly lower than the gross profit growth.
- This helped push operating profit higher by 19% YoY to N8.33 billion and margin up 5.19% to 24% in Q2 2026
Balance sheet
Vitafoam’s balance sheet grew by 1.53% to N66.729 billion, and largely driven by property, plant and equipment of N15.8 billion and growth in cash and cash equivalent to N12 billion.
- The increase in cash and cash equivalents probably contributed to the growth in finance income of N233.731 million compared to N69.307 billion in Q2 2025.
On the equity side, total shareholder equity stood at N40.043 billion, up 13% YoY, primarily due to the growth in retained earnings to N31 billion.
Market reaction
Following the release of the results on April 28, 2026, the stock gained 6.95% intraday to close at N145.95 from its previous closing price of N139.
Month-on-month, the stock has gained 24%, pushing the YtD gain to 58.6%. This follows an impressive 300%YtD gain in 2025.
