The board and management of manufacturer of flexible, reconstituted and rigid foam products, Vitafoam Nigeria Plc, has attributed leadership ingenuity, innovation and passion of its young managers to the company’s impressive outstanding performance despite the inclement operating environment.
The company’s 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. The company declared a cumulative dividend of N525.354 million an increase of 102 percent over N260.518 million in 2018, translating to 42 kobo per share.
Speaking at the annual general meeting (AGM) in Lagos, the Chairman of Vitafoam Nigeria Plc Dr. Bamidele Makanjuola, said: “ Our outstanding performance is not just because we utilised the loans we took from the Bank of Industry and other banks to create value for shareholders but ingenuity of the company’s leadership. Vitafoam is blessed with level headed, innovative and passionate youths that form the core of our managers. The board also comprises wise elders who are always willing to assist the management.”
Reviewing the company’s business performance Makanjuola said the remarkable improvement in performance reflected the effectiveness of improved funding efficiency gains, and impact of the strategic initiatives implemented to address the protracted challenge of low margins in the business.
“The company leveraged the Bank of Industry’s long -term loan facility and other flexible financing windows by negotiating better trade terms with foreign suppliers of raw materials, thereby sidestepping the middle men. The resulting reduction in the cost price of raw materials impacted positively on gross margin,” he said.
Corroborating the chairman, the Group Managing Director of Vitafoam, Mr. Taiwo Adeniyi explained that the company had rebranded its products, systems, processes and technology to sustain competitive edge.
According to him, as part of renewed efforts to optimise operations, enhance earnings and deliver superior shareholder value to the shareholders in future, the frontline manufacturing company is set to upgrade its facilities and reactivate the subsidiaries.
He had explained that the company took strategic decision to re-engineer entire business with special focus on products quality and innovation, market differentiation, customer service and consumer education.
Shareholders showered encomiums on the company’s board and management for the good performance and stressed the need to strengthen the subsidiaries in order to expand the company’s revenue base.