Vitafoam Nigeria Plc proposed a dividend of N1.05 per share, amounting to N1.375 billion, as a commitment to shareholder value.
The dividend will be approved by the shareholders at the company’s 63rd Annual General Meeting (AGM), scheduled for March 6, 2025 in Lagos. The group’s net asset, a major performance indicator of corporate growth shot up to N25 billion in 2024 from N17 billion in the previous year, an increase of 47 per cent.
In a statement released to the Nigerian Exchange Limited (NGX) for the year ended September 30, 2024, the gross profit rose to N30 billion in 2024 from N17 billion, an increase of 76.5 per cent. The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased from N7.9 billion in 2023 to N8.3 billion in 2024 financial year.
However, due to the foreign exchange loss of N12.7 billion in the review period, the profit before tax declined from N6 billion to N1.145 billion. Although the operating profit increased to N7.6 billion from N6.9 billion, this was moderated by the huge finance cost of N7.1 billion which depressed the profit before taxation to N1.1 billion from N6 billion last year.
Speaking on the performance, the group managing director of Vitafoam, Taiwo Adeniyi underscored the company’s resilience and commitment to shareholder value, saying, “our impressive performance was moderated by the cost incurred on forex. But the worst is over on the challenges of forex with the liberalization policy of the federal government. As a good corporate citizen, we decided to reward our shareholders with a dividend of N1.05 per share despite the loss incurred in the forex.”
He added that, ‘our diversified product portfolio will drive future growth while strategic investments backed by research will enhance our competitiveness.
Vitafoam is reputed as a truly Nigerian company and its sales cut across other countries. The company’s six subsidiaries; Vitafoam Sierra Leone Limited, Vitapur Nigeria Limited, Vitablom Nigeria Limited, Vitavisco Nigeria Limited, Vono Furniture Products Limited and Vitaparts Nigeria Limited are well-positioned for quality services and products.
