Vitafoam Nigeria was the toast of the investing public yesterday as the board of the foam-manufacturing company announced that it has recommended payment of cash dividend and distribution of bonus shares to shareholders as returns for the 2018 business year.
The dividend which is subject to shareholders’ approval and withholding tax, is expected to be paid on March 8, 2019, to shareholders whose names appear in the Register of members at the close of business on Friday, February 15, 2019.
Vitafoam is also giving 1 bonus share for every 5 existing ordinary shares to shareholders. The new shares, according to Vitafoam, shall rank equally in all respects with the exisiting ordinary shares except that they shall not rank for the dividend recommended for the year ended September 30, 2018.
Vitafoam Nigeria Plc had released its results for the financial year ended September 30, 2018.
The company’s revenue increased from N17.6 billion in 2017 to N19.5 billion in 2018. This represents a 10.7% increase year on year.
Profit before tax jumped from N18.1 million in 2017 to N793 million in 2018. The company made a profit after tax of N601 million compared to a loss after tax of N127 million recorded in the comparative period of 2017.
Key extracts of the audited report and accounts for the year ended September 30, 2018 showed that Vitafoam Nigeria recorded impressive growths in sales and profitability. Group turnover rose from N17.69 billion in 2017 to N19.53 billion in 2018. Profit before tax jumped from N18.13 million in 2017 to N793.85 million in 2018. After taxes, the company reversed net loss of N127.69 million recorded in 2017 with a net profit of N601.92 million in 2018. Earnings per share thus improved from a loss of 15 kobo in 2017 to a gain of 57 kobo in 2018.
Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi, said the performance underscored deliberate efforts by the management to improve cost effectiveness and general corporate efficiency as well as improved access to amenable capital.
According to him, the company’s performance was boosted by a combination of positive external and internal factors such as improved funding through the Bank of Industry (BoI) intervention and government’s deliberate policy on foreign exchange trading and availability, which helped sourcing of input materials at cheaper rates and also helped planning.
He added that the company also focused on customer centric approach to drive sales by adopting innovative ideas and market differentiation that allowed it to meet the needs of customers across segments.