Vitafoam Nigeria PLC proposed a dividend of N1.05 per share, amounting to N1.375 million, for approval by shareholders at its 63rd Annual General Meeting (AGM), scheduled for March 6, 2025 in Lagos.
This comes as the group's net assets, a major performance indicator of corporate growth, soared to N25 billion in 2024 from N17 billion the previous year, an increase of 47 per cent.
According to the company's financial statement for the year ended September 30, 2024, released to Nigerian Exchange Limited (NGX), gross profit increased significantly to N30 billion in 2024 from N17 billion, an increase of 76.5 percent. Earnings before interest, tax, depreciation and harmonization (EBTIDA) also increased from N7.9 billion in 2023 to N8.3 billion in FY2024.
However, due to the foreign exchange loss of N12.7 billion in the period under review, the profit before tax decreased from N6. billion to 1.145 billion naira. Although operating profit increased from N6.9 billion to N7.6 billion, this was moderated by the huge financing cost of N7.1 billion which reduced pre-tax profit to N1.1 billion from N6 billion last year.
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The Group CEO, Taiwo Adeniyi, underlined the company’s resilience and commitment to shareholder value. “Our impressive performance was tempered by the cost incurred in Forex. But the worst is over in the challenges of the foreign exchange market 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 suffered in the foreign exchange market.
“Our diversified product portfolio will drive future growth, while strategic investments backed by research will enhance our competitiveness,” Adeniyi said.
Vitafoam is reputed to be a truly Nigerian company and its sales extend to other countries. The company's six subsidiaries: Vitafoam Serria Leone Ltd; Vitapur Nigeria Ltd; Vitablom Nigeria Ltd; Vitavisco Nigeria Ltd; Vono Furniture Products Ltd. and Vitaparts Nigeria Ltd. are well positioned to offer quality services and products.
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