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Vitafoam Reduces Loss to N32m, Declares 12 kobo Dividend
Vitafoam Nigeria Plc has recorded a loss of N32 million for the year ended September 30, 2016, which is a reduction compared with a loss of N71.9 million posted in 2015. The operations of the foam making firm have been under pressure due to highly challenging environment. Details of the results released at the weekend showed that the company recorded a revenue of N13.569 billion, down from N16.853 billion in 2015. It ended the year with a loss of N32 million, compared with a loss of N71.9 million in 2015.
However, despite the loss, the directors have recommended a dividend of N125 million , which translates to 12 kobo per share. The dividend is in line with the recent assurance by the company, which said that despite the economic recession, shareholders would receive dividend.
The Group Managing Director and Chief Executive Officer of Vitafoam, Mr. Taiwo Adeniyi had said that 2016 was a very tough period. According to him, the most difficult problem was how to make realistic business decision in the face of continuous uncertainty in view of insecurity, exchange rate, interest rate, devaluation of the naira and insecurity of lives and property.
Adeniyi had disclosed that company had learnt how to operate profitably under recession assured the shareholders of dividend.
“Our shareholders are our pride. We have an obligation to work very hard to ensure that they are rewarded. We have consistently paid dividend. We shall pay dividend for 2016 despite the recession. We have always sustained our culture of shareholder value and we shall continue to appreciate our shareholders’ advice on how to move the company forward. It has been difficult to plan under recession. But we have mastered the terrain. We can now do better planning. Our strategic focus is now to plan by the day. We plan as they come. At least we can now forecast some variables. This is helping us,” he said.
Adeniyi explained that companies that import most of their raw materials had challenges with the exchange and availability of Dollars due to improper alignment of fiscal and monetary policies.
According to him, the federal government’s policy of preferential allocation of Dollars to genuine manufacturers did not achieve desired result because it is cashed backed. He explained that the manufactures could not take advantage of the special window for forex because many of them could not back their high demand with cash while the banks who are supposed to lend money had liquidity problem.
