FY 2017: Vitafoam Nigeria Posts N128m Loss Despite 30% Rise in Revenue

By Modupe Gbadeyanka

Despite recording 30.4 percent increase in its revenue in the 2017 financial year, which ended on September 30, 2017, one of the leading foam makers in Nigeria, Vitafoam, posted a huge loss in the period under review.

In its audited financial results released to the Nigerian Stock Exchange (NSE) on Monday, January 08, 2018, the firm said its revenue grew from N13.57 billion in the 2016 financial year to N17.7 billion in 2017.

This was boosted by some strategic initiatives put in place by the management to enhance the company’s earnings.

However, the issue of foreign exchange (forex) in the operating environment in Nigeria affected its profit in the period under review.

According to the financial statements, the profit before tax of the firm fell to N18.1 million in 2017 from N61.2 million, while the company further recorded a loss of N127.7 million in the period under review in contrast to N32.03 million loss in 2016.

‍​This was as a result of the huge amount paid as tax in the period under review, N145.8 million.

In the financial statements, Vitafoam recorded an operating profit of 1.3 billion as at September 30, 2017 against 888 million a year ago.

Also, value of its total assets stood at N13.4 billion as at September 30, 2017 against N13.3 billion at September 30, 2016.

During the period under review, Vitafoam said dividends of N125.04 million (N0.12 per share) which relates to year ended September 30, 2016 (2015 N245.7 million (N0.25 per share)) was paid in arrears in the year 2017.

Also, Vitablom Nigeria Limited, its subsidiary, paid a dividend of N30 million (N0.15 per share) for the same period. A dividend in respect of the year ended September 30, 2017 of N0.15 per share, amounting to a total dividend of N156.36 million is to be proposed by Vitafoam Nigeria Plc at the annual general meeting on March 8, 2018 while a dividend of N0.16 amounting to N32 million is to be proposed by Vitablom Nigeria Limited. This financial statement does not reflect the dividend payable.

View the full report HERE