By Adedapo Adesanya
Vitafoam Nigeria Plc, after a remarkable performance in the last financial year, has said that it would pay a dividend of N525.35 million to its esteemed shareholders, indicating 42 kobo for each unit of the shares held by its investors.
According to the manufacturing company, this reward will be paid from the profit after tax of N2.38 billion realized in 2019, signifying an increase of 68 percent larger than 25 kobo paid in 2018.
The dividend is slated to be paid on March 5, 2020 after shareholders of the company approve this payment at the annual general meeting (AGM) slated to hold on March 4, 2020.
According to the company’s financial results, Vitafoam said for the year ended September 30, 2019, it recorded a rise in profit to N2.38 billion from the N602 million made in the comparative period of 2018. This represents a 295 percent rise in profit.
It was also disclosed that the company’s revenue rose to N22.3 billion in 2019 from N19.5 billion recorded in the previous year, just as it also recorded a simultaneous increase in operating profit to N4.4 billion in the year under review from N2.1 billion in 2018.
Chairman, Vitafoam Nigeria Plc, Dr Bamidele Makanjuola, said the growth in turnover and profitability reflected the robustness and fundamental strength of the group’s business.
According to him, the company had taken strategic decision and reengineered its business with special focus on products quality, innovation, market differentiation, customer service and consumer education.
“These efforts underscored our long-term priorities of growing revenue, controlling operating costs, and driving higher gross margins. I am pleased to report that we made great strides in cost containment and sustained positive trends in gross margins,” Mr Makanjuola said.
He also stated that improved performance of the company could be attributed to the great strides made in cost suppression and sustained positive trends to expand the frontiers of growth in the coming years.
On his part, the Group Managing Director, Mr Taiwo Adeniyi, expressed the company’s determination to ensure its financial performance continues to improve regardless of the nature of the operating environment and this shall always translate to higher shareholder value.
The Vitafoam GMD said the group’s Nigerian businesses are on a stronger footing while three of its seven subsidiaries have started to generate profit.
