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Tag: Vitafoam Nigeria

  • Shareholders approve Vitafoam Nigeria’s N1.31b dividend

    Shareholders approve Vitafoam Nigeria’s N1.31b dividend

    Shareholders of Vitafoam Nigeria Plc  have approved payment of N1.31 billion as cash dividends for the 2024 business year as the company reaffirmed its commitment to sustainable growth.

    At the annual general meeting in Lagos, shareholders said the company’s decision to sustain its unbroken historical dividend payment record underlined board and management’s commitment to shareholders’ value.

    The N1.31 billion dividend, representing a dividend per share of N1.05 highlighted the 2024 performance.

    Key extracts of the audited report and accounts for the year ended September 30, 2024 showed that Vitafoam Nigeria’s turnover rose by 56 per cent from N52.9 billion in 2023 to N82.6 billion in 2024. But the impact of the top-line growth was moderated by foreign exchange loss.

    A shareholders’ leader and activist, Mr. Adebayo Adeleke said the dividend payment showed that the company has the interest of its shareholders at heart.

    Read Also: CBN to contain naira volatility with forex inflows

    “With the impressive performance of the subsidiaries, we are becoming a conglomerate. There is a need to strengthen the board structure of the subsidiaries,” Adeleke said.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare said Vitafoam’s outstanding performance despite the tough operating environment was due to a legacy of excellent foundation laid over the years.

     “The outstanding performance under the leadership of the current chief executive officer is a testament to a legacy of good foundation by every chief executive officer of the company over the years. While commending the board, I also advise that more women be brought on the board as against the current situation of one woman. This will promote gender-balance and enhance corporate governance,” Bakare said.

    Chairman, Vitafoan Nigeria, Zakari Sada, said appropriate strategies had been put in place to position the company for stellar performance.

    He explained that the increase in revenue attested to the strength and acceptability of the Vitafoam brand.

    He however noted that the positive top-line performance was undermined by the huge foreign exchange loss posted during the year, due majorly to impact of harmonisation of exchange rate.

    “I would like to assure you all of a bright light at the end of the tunnel as strategies are already being implemented to mitigate the impacts of these external factors on our business going forward,” Sada said.

    Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi said the group’s strategic focus on operational efficiency, innovative product offerings, and customer satisfaction has enabled it to navigate the challenging environment and achieve significant growth.

    “We remain optimistic about the future and are confident that our strategies will continue to yield positive results,” Adeniyi said.

  • Vitafoam Nigeria assures of better returns

    •Shareholders get dividend, bonus

    Shareholders of Vitafoam Nigeria Plc yesterday approved the payment of N260.51 million as cash dividend and a scrip dividend of one share for five shares as the directors of the company assured that it would sustain the current growth trajectory.

    At the annual general meeting in Lagos, shareholders commended the company for what they described as impressive results in 2018. They approved the distribution of N260.51 million, representing a dividend per share of 25 kobo, in addition to bonus share of one new ordinary share of 50 kobo each for every five ordinary shares of 50 kobo each.

    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 consistent growths in key performance indicators in successive results provide basis for assurance that the company will be able to surpass its previous performance in the current business year.

    He noted that the first quarter results for the current business year had shown the direction of the group’s business, adding that the second quarter results, which will be released in the next few weeks, further consolidated the performance of the company.

    Key extracts of the interim report and accounts of Vitafoam Nigeria for the three-month period ended December 31, 2018 had shown that turnover rose by 26.3 per cent while profits before and after tax doubled by 98.48 per cent and 123.14 per cent respectively. Group turnover stood at N6.38 billion in December 2018 as against N5.05 billion recorded in comparable period of 2017. Profit before tax rose from N258.53 million to N513.12 million while profit after tax jumped from N162.17 million to N361.87 million. Earnings per share also increased from 13 kobo by December 2017 to 33 kobo in December 2018.

    Adeniyi said the group’s Nigerian businesses are on a stronger footing while three of its seven subsidiaries have started to generate profit.

    He said the company will continue to innovate and develop products that will keep it ahead of competition and enable it to grow its turnover while extracting better values for shareholders.

    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,” Makanjuola said.

    He said the dividend payout and bonus shares were rewards to shareholders for their unwavering support and commitment to the cause of the company.

    “We will continue to champion investment in people, processes and technology in a bid to grow revenue and consolidate the strategic transformation of our company,” Makanjuola assured.

     

  • Vitafoam Nigeria to drive growth with new products

    Vitafoam Nigeria Plc has assured of sustained improvement in earnings in the years ahead as the company launched new products to boost its ability to meet the needs of diverse customers.

    Speaking at the launch of eight new products in Ikeja, Lagos, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, said the company was poised to sustain its impressive growth in the years ahead.

    According to him, the new products will help to expand the revenue base of the company and deliver better values for stakeholders.

    He said the first quarter results of the company, which will be released shortly, have shown that its growth trajectory, which recovered from a net loss of N127.69 million in 2017 to a net profit of N601.92 million in 2018, is sustainable.

    On the basis of the 2018 results, the board of Vitafoam Nigeria had recommended cash dividend of N260.51 million, representing a dividend per share of 25 kobo, in addition to bonus share of one new ordinary share of 50 kobo each for every five ordinary shares of 50 kobo each.

    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.

    Presenting the new products, Adeniyi said that the new products were borne out of the company’s culture of innovativeness adding that product differentiation has become one of the hallmarks of Vitafoam Group which makes it difficult for anyone to clone the company’s unique products.

    The new products included Vita Pearl, a pillow that regulates temperature and draws moisture from body, assorted customised beds, sofas, threefold mat for leisure, reading chairs, three specialized mattresses including orthopedic and classic and various polyurethane sandwich panel steels.

    “For us in Vitafoam, we are very concerned about innovation. Our ability to research, develop and then end up in innovating different products that meet the customers’ needs gives us great satisfaction. In the history of Vitafoam, this launch is one event long overdue because we had sneaked into the market a number of products which were not particularly launched this way. We delight ourselves to be able to make history once again. This is another step in the right direction to sustain our corporate culture of shareholder value,” Adeniyi said.

    He pointed out that the new products would help to sustain the company’s reputation as a customer-centric organisation and a delightful investment for shareholders, noting that Vitafoam Nigeria has had unbroken dividend payment records since its quotation.

    “The Nigerian market is waiting for our products. As soon as we have introduced a product into the market, we are also working on some other ones. It is difficult to fake our products because product differentiation is our strategy,” Adeniyi said.

    Commercial Director, Vitafoam Nigeria Plc, Mr Sola Owoade added that the company’s subsidiaries have carved niches for themselves as they specialize in manufacturing of specific products.

    He noted that Vitafoam Group leverages on research and development in order to keep abreast of changing dynamics of customers’ demand.

    He listed the subsidiaries to include Vitapur Nigeria Limited, Vitablom Nigeria Limited, Vitavisco Nigeria, Vitagreen, Vitapart, Vono  Products and Vitafoam Sierra Leone Vitafoam Ghana.

    One of the major distributors of Vitafoam Nigeria’s products, Mr Toye Adegboye said the new products would further diversify Vitafoam’s products and increase its market share.

    “Some of the products are pocket -friendly and without compromising standard. As a good corporate citizen, all the company’s products are of high quality and the target of Vitafoam as a group is to produce affordable, high quality products which is making business to thrive for us as their partners,” Adegboye, Operator of Vitafoam’s Comfort Center, Ilupeju, said.

    Chairman, Vitafoam Nigeria Plc, Dr Bamidele Makanjuola commended the management of the company for keeping faith with the ideals of innovation, training and spirit of teamwork.

    He expressed optimism that that the company’s products could compete favourably with any global products.

     

  • Vitafoam Nigeria declares cash dividend, bonus shares

    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.

    Vitafoam Nigeria’s share price rose by the highest daily allowable change of 10 per cent at the Nigerian Stock Exchange (NSE) to close at N4.40 per share.

    The board of the company has recommended cash dividend of N260.51 million, representing a dividend per share of 25 kobo. Besides, shareholders will receive bonus share of one new ordinary share of 50 kobo each for every five ordinary shares of 50 kobo each held as at the close of business on the qualification date.

    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.

  • Keystone Bank, Vitafoam Nigeria others for awards

    Top organisations and brands have been named to have won the fifth annual edition of Nigeria Pension Awards and Africa Finance Awards scheduled to hold in Lagos on March 29th 2018.

    The companies include Keystone Bank, Vitafoam Nigeria Plc, Propertymart, PTAD, Modion Communications and STL Trustees.

    According to the organisers, the programme is designed to honor outstanding professionals and corporate organisations in the pension, finance, insurance and other sectors.

    The event will be witnessed by leaders and decision makers across different sectors in Nigeria, Ghana, Kenya and South Africa.

    Some of the winners for the 2017 awards include Keystone Bank Plc, Orange Insurance Brokers, Pension Transitional Arrangement Directorate, First Registrar & Investor Services, Zenith Pension Custodian Limited, ARM Pensions, and Capricorn Marine & Technologies Plc among several other leading organisations.

    Other winners include Powergas, PAC Capital Limited, Modion Communications, Adron Homes, Integrated Corporate Services Limited to mention but few.

     

     

    Adesanya Abidemi, the project director also mention some past winners of the coveted award to include Stanbic IBTC Pension, Oak Pension, Fidelity Pension Managers, First Pension Custodian, AIICO Pension Managers, Crusader Sterling Pensions, FUG Pension and UBA Pension Custodian.

  • Vitafoam Nigeria grows Q1 net profit by 94%

    Vitafoam Nigeria grows Q1 net profit by 94%

    Vitafoam Nigeria Plc has witnessed a considerable improvements in its margins and operating efficiency in the first quarter of its business year.  Net profit rose by 94 per cent to N162 million in three months.

    The interim report and accounts  for the three-month period ended December 31, 2017 showed that pre-tax profit rose by 71.4 per cent; net profit increased by 94 per cent.  However, the top-line declined marginally.

    Turnover declined slightly from N5.28 billion in 2016 to N5.05 billion in 2017. Profit before tax increased from N150.8 million to N258.53 million while profit after tax rose from N83.58 million to N162.17 million. Earnings per share doubled from 6.0 kobo to 13 kobo.

    In a recent review, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, said significant reduction in interest expense and new business operations would boost performance and ensure better returns to shareholders in the years ahead.

    According to him, strategic initiatives aimed at boosting working capital and sustaining competitive edge would impact positively on the company’s performance in the years ahead.

    He noted that the company has secured a four-year N2 billion loan from the Bank of Industry (BOI) at concessionary interest rate of 12 per cent, a significant reduction from 25 per cent commercial rate incurred by the company in 2017.

    According to him, the BOI’s credit facility would help to reduce finance cost and enhance the company’s ability to directly import its raw materials from the global market.

    “There will be a huge favourable reduction in finance cost by a minimum of N240million, representing 20.4 per cent. Secondly, the previously depleted working capital will be boosted by the BOI’s four-year working capital support. This will enable Vitafoam source its major raw materials directly from overseas manufacturers, thereby retaining middlemen margin in the business. A minimum of 15 per cent margin will be saved on every direct import of major raw materials,” Adeniyi said.

    He outlined that the company has created new business lines that will boost profitability and cushion the adverse effect of fluctuations in other business lines.

    “Specifically, Vitaparts Nigeria Limited, a new subsidiary, established to manufacture oil filters, is expected to commence operation in the third quarter of the current financial year while importation and installation of the manufacturing plant will be concluded in the second quarter of the year, all things being equal.

    “These new strategic initiatives are designed to diversify operation and revenue base of the group. In a similar vein, Vitablom Nigeria Limited, the soft furnishing subsidiary has concluded installation of fiber processing plant. The new production line is expected to boost the operation and revenue base of the group,” Adeniyi said.

    He pointed out that the company recorded a profit after tax of N190 million in 2017 as against N412 million recorded in 2016, despite the tough operating climate. Group turnover also rose by 30 per cent.

    He attributed the performance in 2017 to cost control measures put in place by the management citing the three per cent reduction in administrative expenses and reduction of distribution cost from five percent to four percent of revenue between 2017 and 2016 financial year.

    He noted that due to weak working capital and paucity of foreign exchange letters of credit, the company purchased more than 80 per cent of its raw materials locally, thereby incurring more cost.

    He said the board of the company has decided to recommend distribution of N156.36m as cash dividend to shareholders to further demonstrate the company’s long-standing commitment to shareholder value.

  • Vitafoam Nigeria optimistic on future growth

    Vitafoam Nigeria Plc expects significant reduction in interest expense and new business operations to boost performance and ensure better returns to shareholders in the years ahead.

    At a media interactive session at the weekend, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said strategic initiatives aimed at boosting working capital and sustaining competitive edge would impact positively on the company’s performance in the years ahead.

    He noted that the company has secured a four-year N2 billion loan from the Bank of Industry (BOI) at concessionary interest rate of 12 per cent, a significant reduction from 25 per cent commercial rate incurred by the company in 2017.

    According to him, the BOI’s credit facility would help to reduce finance cost and enhance the company’s ability to directly import its raw materials from the global market.

    “There will be a huge favourable reduction in finance cost by a minimum of N240million, representing 20.4 per cent. Secondly, the previously depleted working capital will be boosted by the BOI’s four-year working capital support. This will enable Vitafoam to source its major raw materials directly from overseas manufacturers, thereby retaining middlemen margin in the business. A minimum of 15 per cent margin will be saved on every direct import of major raw materials,” Adeniyi said.

    He outlined that the company has created new business lines that will boost profitability and cushion the adverse effect of fluctuations in other business lines.

    “Specifically, Vitaparts Nigeria Limited, a new subsidiary, established to manufacture oil filters, is expected to commence operation in the third quarter of the current financial year while importation and installation of the manufacturing plant will be concluded in the second quarter of the year, all things being equal.

    “These new strategic initiatives are designed to diversify operation and revenue base of the group. In a similar vein, Vitablom Nigeria Limited, the soft furnishing subsidiary has concluded installation of fiber processing plant. The new production line is expected to boost the operation and revenue base of the group,” Adeniyi said.

    He pointed out that the company recorded a profit after tax of N190 million in 2017 as against N412 million recorded in 2016, despite the tough operating climate. Group turnover also rose by 30 per cent.

    He attributed the performance in 2017 to cost control measures put in place by the management, citing the three per cent reduction in administrative expenses and reduction of distribution cost from five percent to four percent of revenue between 2017 and 2016 financial year.

    He noted that due to weak working capital and paucity of foreign exchange letters of credit, the company purchased more than 80 per cent of its raw materials locally, thereby incurring more cost .

    He said the board of the company has decided to recommend distribution of N156.36million as cash dividend to shareholders to further demonstrate the company’s long-standing commitment to shareholder value.

  • ‘Vitafoam Nigeria, Vono Products merger ‘ll benefit shareholders’

    The merger of Vitafoam Nigeria Plc and Vono Products Plc would create better values for shareholders of the two companies and enhance the long-term competitiveness of the larger company.

    Shareholders of both Vitafoam Nigeria and Vono Products earlier this month voted in favour of a scheme of merger, which will see Vitafoam Nigeria absorbing Vono Products.

    Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said the merger of the two leading foam and bedding companies would lead to higher earnings and enhanced shareholder value.

    Addressing journalists in Lagos, Adeniyi said the shareholders of the two companies voted in favour of the merger because of potential benefits such as economies of scale, cost savings and improved operational and administrative efficiencies among others.

    According to him, the enlarged company would have enhanced growth in size and profitability.

    “If we produce foam and Vono produces furniture, they are complementary. It is a strategic decision for Vitafoam to have Vono as a subsidiary. As you are aware, we have other subsidiaries such as Vitabloom, Vitagreen and Vitapur. Each of them produces distinct products. But they have something in common and this defines the unity of purpose,” Adeniyi said.

    He said the national spread of the group and its international operations have positioned it to weather tough operating environment and continue to deliver better values for shareholders.

    “We are truly a national company. We have a full fledged factory in Ikeja, Kano, Aba and Jos. We also have factories offshore. We operate in Sierra Leone and Ghana and these are strategic centres aimed at positioning us for inflow of forex in the long term. They may not be generating expected profit for now but they have high prospect. The key issue is that Vitafoam as a group has a very bright future and the shareholder value would be greatly enhanced,” Adeniyi said.

    Corroborating him, Group Executive Director, Corporate Services, Vitafoam Nigeria, Mr Olatunji Anjorin described the merger as a vertical one as the furniture produced by Vono Products would complement Vitafoam’s foams.

    Anjorin explained that the consummated merger would put an end to past encumbrances militating against Vono’s growth, bringing about more efficient expertise, shared value and improved technology.

    Commenting on the operating environment , Adeniyi lamented the plight of manufacturers and pleaded that the Federal Government should address the chronic shortage of dollar and also revive Eleme Petrochemical Industry to live up to its strategic objective of serving as a hub for providing raw materials.