Shareholders of Vitafoam Nigeria Plc have every reason to smile as the company has recommended cash dividend and bonus shares for the financial year ended September 30, 2018.
The company recorded net profit of N601. 923 million in 2018, compared with a loss of N127. 690 million in 2017, while basic earnings per share (EPS) stood at 57 kobo in the review period as against a negative 15 kobo in the preceding year.
Based on the performance, the board of directors of the company has recommended a dividend of 25 kobo per share. The shareholders are also to receive a bonus share of one for five ordinary shares already held.
The announcement of Vitafoam’s strong earnings prompted many investors to place buy order on the stock to take advantage of its current price.
According to market operators the company’s may continue attract high demand despite the general lull in the market.
For instance, Managing Director and Chief Executive Officer, Network Capital Limited, Mr. Oluropo Dada ascribed the rally created by Vitafoam’s result to the associated value for both existing and potential shareholders:
“The stock market is information – driven. It responds to every information from quoted companies, regardless of the type of information. This is the beauty of the market in aggregating investors’ reaction to every bit of information or market hearsay. The 25 kobo dividend and one for five bonus is the fundamental factor driving Vitafoam’s share price. This is real. Everyone knows that the company’s current performance is far better than that of last year,”, Dada said.
The Group Managing Director and Chief Executive Officer, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi attributed the company’s performance to a range of factors including access to finance, availability of raw materials and putting customers at the center of all the company’s activities among others.
“We are enjoying improved funding through Bank of Industry (BOI)’s intervention, deliberate cost management, improved efficiency, customer centric approach to selling, innovative thinking, market differentiation, government’s deliberate policy on forex trading and availability which has helped in sourcing of input materials at cheaper rates and also planning,” Adeniyi said.
The company’s Chairman, Dr. Bamidele Makanjuola has always affirmed that Vitafoam thrives on innovation, team work among the staff and adherence to the highest standard of corporate governance at both the board and management level.
Vitafoam Nigeria Plc is a foremost manufacturer of flexible, reconstituted and rigid foams with subsidiaries that specialise in various products.