In a strategic move to expand its products offering, boost operations and sustain competitiveness, Vitablom Nigeria Limited has conclude arrangements to commence production of fiber sheets.
By this plan, Vitablom Nigeria, a subsidiary of Vitafoam Nigeria Plc, is set to acquire fibre sheet production plant.
Although, details of the new investment strategy are sketchy, there are strong indications that the high profile equipment would elevate the quality of Vitablom’s products.
Addressing the shareholders at the company’s Annual General Meeting (AGM) in Lagos recently, Vitablom’s chairman, Mr. Taiwo Adeniyi explained that the rationale behind the proposed investment was to enhance synergy between Vitablom Nigeria Limited and other foam making companies.
Adeniyi, who reviewed the operating environment lamented that the global economic crisis had impacted negatively on the activities of many companies worldwide.
He stressed that despite the challenges, Vitablom was able to weather the storm with good financial result.
According to him, “It was indeed a period hallmarked by a variety of challenges, but it is gratifying to note that our dynamic company characteristically weathered all storms and in fact, we have cause to remain proud of ourselves.
“In 2015, economic growth prospects dimmed on a global scale given the drastic reduction in the volume of consumption of crude oil relative to supply resulting in worsened financial conditions. Commodity prices skyrocketed while oil prices experienced an all-time volatility throughout the year.
“The successful elections early 2015 created optimism amongst Nigerians, individuals and businesses alike. However, despite the positive economic prediction of robust growth prospects for developing and emerging markets like Nigeria, the major indices reveal that Nigeria fell short of its growth potential in 2015 principally due to lack of funds to finance infrastructural developments.”
He added: “The Naira remained weak against major currencies and the persistent demand pressure in the foreign exchange market resulted in the Central Bank of Nigeria (CBN) tightening fiscal controls on oil revenue. Nigerian Stock Exchange All Share Index recorded a downward trend at the close of the year.
“The money market continued to experience restrictive monetary policy stance of the CBN which had severe impact on the fortunes of the players in the real sector of the economy. The Nigerian situation was compounded by the violence and insecurity in the Northern parts of the Country. Although our military has successfully weakened insurgence, this has not translated to economic growth as it continually poses a major risk to foreign direct investment and existing business operations especially in the affected areas.”
Adeniyi, however explained that despite the inclement operating environment the company’s turnover increased to N754.9 million in 2015 from N693.49 million in 2014. Profit before taxation also increased to N119.79 million in 2015 from N101.75 in 2014.
“Our company’s performance reinforced its capacity to continue winning the hearts of its customers through products offering which creates better future for them every day”, he said.
The shareholders unanimously approved a dividend pay-out of 27 kobo per share representing an increase of 8 per cent over the
Commenting on the company’s plan to expand its product line, Managing Director and Chief Executive Officer, Mrs. Titi Bakare explained that the investment initiative was designed to steadily position Vitablom as a major supplier of input material to the soft furniture and industrial material sector of the West African region.