Vitafoam Grows Profit by 296%, to Pay N525m Dividend to Shareholders

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Goddy Egene

Shareholders of Vitafoam Nigeria Plc will share a dividend of N525 million for the year ended September 30, 2019, translating to 42 kobo per share. The dividend, which is 68 per cent above the 25 kobo paid the previous year, was disclosed yesterday when the company’s results were released to stock market operators.

Going by the results, the foam making company recorded highly improved performance as profit for the year soared by 296 per cent. An analysis of the results showed that revenue rose from N19.534 billion to N22.283 billion. Operating profit grew from N2.092 billion to N4.444 billion. Net financing cost declined from N1.377 billion to N1.049 billion, while profit after tax stood at N2.386 billion compared with N602 million in 2018.

Based on the improved performance, the board has recommended that a dividend of N525 million, which is 42 kobo per share be paid to the shareholders. The dividend would be paid on March 5, 2020 after shareholders’ approval at the annual general meeting on March 4, 2020.

The Chairman of Vitafoam Nigeria Plc, Dr. Bamidele Makanjuola had last year disclosed to shareholders that following the economic downturn of recent years, the firm took strategic decision to re-engineer entire business with special focus on products quality and innovation, market differentiation, customer service and consumer education.

According to him, the company made great strides in cost containment and sustained positive trends to expand the frontiers of growth in the coming years.

Similarly, the Group Managing Director of Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi assured the shareholders that the company’s financial performance would continue to improve regardless of the nature of the operating environment and this shall always translate to higher shareholder value.