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Tag: Vitafoam

  • Vitafoam signs MoU with Nigerian Academy of Science

    A major stakeholder in the foam industry, Vitafoam Nigeria Plc. has propped up her Corporate Social Responsibility by signing a Memorandum of Understanding (MoU) with the Nigerian Academy of Science to promote the study of sciences.

    With the MoU, which will last three years at the first instance, Vitafoam will be partnering the academy in sponsoring roundtable conferences after social publications and gathering of scientists nationwide for brainstorming to ensure science is tailored towards the needs of Nigerian industries.

    At the signing of the MoU on Tuesday in Lagos, the Managing Director/CEO of Vitafoam Nigeria Plc,Mr. TaiwoAdeniyi, said Vitafoam, which has been in existence for over 56 years, has been contributing its quota to the scientific development of the country.

    He stressed the need for Nigerian scientists to see how they can assist in tailoring science to the requirement of our industries.

    Mr. Adeniyi commended the Nigerian media for creating weekly science page in their newspapers, but “enjoined them to discard writing on general science but specifically write on the needs of the society”.

    He disclosed that Vitafoam has been contributing to the development of science in the past, adding that, “Vitafoam is building a Central Research Conference Centre at the University of Lagos which will be commissioned soon”.

    An elated president of the Nigerian Academy of Science, Professor Mosto Onuoha commended Vitafoam for this initiative, noting that the relationship “is geared towards maximizing the benefits of science and society”

    He noted that Vitafoam had been in the forefront of sponsoring the academy’s annual Award of Excellence and urged other corporate bodies to emulate Vitafoams laudable gesture.

    Professor Onuoha disclosed that the academy had no laboratory, but could only liaise with universities in terms of training the graduate who must have started their studies from the secondary school level, adding that, “NAS believes in catching them young”.

  • Vitafoam Nigeria assures of higher return

    Vitafoam Nigeria assures of higher return

    •Shareholders get N156m dividend

    The board of directors of Vitafoam Nigeria Plc has assured shareholders that it would work to more than triple dividend payout for the current business year as the group continues with the implementation of key strategies aimed at strengthening its operations.

    At the annual general meeting yesterday in Lagos, shareholders unanimously approved the payment of N156 million as cash dividend for the 2017 business year, representing a dividend per share of 15 kobo. Shareholders however called on the directors of the company to increase payout in the current business year.

    Addressing the shareholders, Chairman, Vitafoam Nigeria Plc, Dr. Bamidele Makanjuola, said the board and management would work to ensure that the company delivers better returns to shareholders in the years ahead.

    According to him, with the improvement in the macroeconomic environment and injection of N2 billion new capital into the operations of the company, Vitafoam Nigeria will leverage its innovative pedigree and strong presence in markets nationwide to achieve superior performance.

    He noted that most of the subsidiaries of the company have now reached maturity and are well-positioned to bolster shareholder value and outpace competition.

    “After every economic recession, historical antecedents suggest that a new era of prosperity and progress usually emerges. Our company is fully cognizant of this trend and has already utilised the difficult year to fine-tune its strategies for the incipient opportunities,” Makanjuola said.

    He explained that a strategic review of the company’s business units was undertaken to ascertain continued alignment with broader transformation objectives in order to position the group for accelerated profitability.

    He added that the company had completed its expansion project and has begun to consolidate for optimal performance as reflected in the operations of its subsidiaries.

    “Vitapur Nigeria Limited has become a source of hope and inspiration. It has posted profit for the second year running. Our moulded foam products, Vitavisco Nigeria Limited has continued to operate profitably, it is growing slowly but steadily.  Vitablom Nigeria Limited has maintained its profit-making streak, although this was attenuated during the year by the adverse economic conditions in the country,” Makanjuola said.

    He said the directors of the company will look into the popular demand for recapitalisation of the company through a rights issue by the shareholders, assuring that the board will take the appropriate decision in the best interest of the shareholders.

    Shareholders who spoke at the meeting commended the company’s board and management on its long tradition of stability and regularity of dividends despite the tough operating environment.

     

    Shareholder activist and founding member of the Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo commended the company’s foresight in its diversification into pre-fabricated buildings and leather products, which could be exported to earn foreign exchange.

    In his remarks, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said the first quarter result of the company for the current business year has already shown that it could attain the target of significant increase in dividend payout.

    He assured shareholders that the management would remain prudent in its financial management while exploring opportunities to improve the performance of the business units.

  • Economic recession affecting job security — Union

    Economic recession affecting job security — Union

    The organised labour says decent jobs are gradually going into extinction while job security is being threatened on a daily basis by unstable and recessed economy.

    Mr Babatunde Olatunji, the President, National Union of Chemical, Footwear, Rubber, Leather and Non-Metallic Product Employees (NUCFRLNMPE), said this on Tuesday at the 26th Annual Industrial Relations Seminar holding in Benin from Aug. 21 to Aug. 25.

    According to Olatunji, the cause of job insecurity can largely be attributed to the inability of manufacturers to access foreign exchange for their business.

    The News Agency of Nigeria (NAN) recalls that the Central Bank of Nigeria (CBN) gave concession of 60 per cent foreign exchange to the real sector following Vice President Yemi Osibanjo’s initiative on the Ease of Doing Business.

    Also, Mr Frank Jacobs, President, Manufacturing Association of Nigeria (MAN), said, “even though the preferential forex allocation was removed vide the forex policy of Feb. 21, 2017, the CBN has promised to continue to accord the manufacturing sector strong priority in forex allocation.’’

    Jacobs added that the preferential forex allocation regime brought increase in capacity utilisation into the sector as manufacturing activities were galvanised leading to an improved performance.

    The president of the union insisted that in spite of CBN’s promise on forex, chemical and footwear workers have continued to lose jobs because of the difficulty in accessing forex being faced by employers.

    “Many factories are operating far below installed utilisation. This makes management to deploy tactics of saving cost by reducing workers welfare,’’ Jacobs said.

    He further decried the epileptic power supply that has continually sapped the gains of production from most manufacturers, while consumers have continued to bear the high cost of products.

    Jacobs, therefore, appealed to the government to look into the issue of insecurity and the deplorable condition of roads which, he said, was impeding the growth and development of the manufacturing sector.

    In his message, Mr Bashir Kadiri, the Permanent Secretary, Edo Ministry of Agriculture and Natural Resources, said that investment was the only way to drive industrialisation.

    Also, Mr Akinbode Kolawole, first President of NUCFLNMPE, said the training was important because it represented a `passport’ that could move the workers and industry forward.

    Kolawole said that without such training, it would be difficult for workers to be acquainted with the best practices for improve productivity.

    No fewer than 500 workers from Vitafoam, Nigerite, Unilever, Nicil, Lafarge Cement, and Pure Chemical Ltd, among others, attended the seminar.

    This year’s seminar has been tagged: `Emerging Industrial Relations Practices: Issues, Challenges and Way Forward.’’

  • Ogun, Vitafoam to partner on socio-economic development

    Ogun, Vitafoam to partner on socio-economic development

    Ogun State Government has commended Vitafoam Nigeria Plc for its visionary growth plan and reiterated its commitment to providing conducive environment and incentives for companies operating in the state.
    Top officials of the Ogun State Government were at the Dalemo, Sango-Ota factory of Vono Furniture Products Limited, a subsidiary of Vitafoam Nigeria Plc on a facility tour. The entourage included the Commissioner for Commerce and Industry, Otunba Bimbo Ashiru; Commissioner for Helath, Dr. Babatunde Ipaye and Special Adviser to Ogun State Governor on Trade and Investment, Mrs. Babi Subair.
    Ashiru said the state believes in the private-public partnership approach to development as government needs the supports of the private sector to achieve its developmental agenda of job creation, good standards of living and infrastructure.
    He said the state would continue to support companies like Vitafoam Nigeria and its subsidiary Vono Furniture Products Limited, which are helping to develop the local value achieve in line with the local content programme of the government.
    He emphasised the importance of the “made-in-Nigeria, buy Nigeria” campaign as a bedrock of national economic development, assuring that the state government would continue to provide adequate infrastructure for businesses to thrive.
    According to him, in furtherance of its determination to enhance ease of doing business in the state, the government created a one-stop shop to assist companies with all regulatory processes while the state also has a bouquet of incentives for companies including tax waivers and concessions.
    “I am very impressed with what I have seen so far,” Ashiru said, urging the company to demonstrate commitment to corporate social responsibility by providing employment for citizens within its area of location. He said the state government would be willing to partner with the company in the area of such corporate social responsibility including construction of access roads.
    He noted that the state has the largest concentration of companies in Nigeria and it is also blessed with vast resources, urging companies to take advantage of the vantage position and resources of the state.
    Ipaye commended Vono Furniture Products for its commitment to enhancing the nation’s economic activities pointing out that the company is filling a critical gap in the socio-economic development of the country.
    The Commissioner for Health noted that for a state like Ogun with health and education, the products of Vono Furniture Products would help the government to achieve its objectives without depleting its scarce foreign exchange.
    He assured that the government would consider products from the company in its purchase orders, advising the company to also consider concessionary prices for government’s orders given that such purchases are for the overall good of the people.
    “We look forward to a relationship with Vono,” Ipaye said after watching a digital presentation and manual inspection of the company’s products.
    Subair said that with the investments already made in machineries and human expertise, Vono has been well positioned to take advantage of the market.
    She assured that government would continue to provide necessary supports to encourage the company.
    In his remarks, group managing director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi, commended the Ogun State Government for its supports to the group noting that the presence of the top officials of the government was an encouraging testimony of the state’s continuous support towards the development of indigenous companies in Nigeria.
    He pointed out that the Vitafoam Group that started as a development experiment has grown over the years from just a foam-manufacturing company into a complete home solution company with five business subsidiaries that produce vast range of products including bed and beddings, pre-fab structures, insulation, foot wears and wood and metal furniture among others.
    He added that the group has subsidiaries in Ghana and Sierra Leone as part of efforts to extend its reach across the West African market.
    He said the company would in the next few years develop its ultra-modern new manufacturing complex at the flowergate estate at the Sagamu-Ibadan Expressway interchange area of Ogun State into a world-class facility with the full value chain for complete home solutions.
    He urged the shareholders of the company to continue to support the directors and management of the company, assuring that they will reap the rewards of their steadfastness.

  • Vitafoam outlines growth strategies as shareholders get N125m dividend

    Vitafoam outlines growth strategies as shareholders get N125m dividend

    Vitafoam Nigeria Plc will launch a new finance strategy, strengthen its operations through innovative products and reposition its foreign operations further for sustainable profitability as part of a broad growth plan for the 2017 business year.
    Chairman, Vitafoam Nigeria Plc, Dr. Bamidele Makanjuola, who outlined the group’s growth strategy to shareholders at the annual general meeting in Lagos, said the group would continue to proactively reappraise its strategies in a bid to harness emerging opportunities from various government reforms in order to deliver better returns to shareholders.
    According to him, the company plans to launch a more robust and creative funding strategy this year to lessen the impact of finance cost on the business and ensure improved returns to shareholders.
    He noted that in spite of the inclement manufacturing environment in Nigeria, continuing strategic repositioning has lessened the disruptive impact on the group, adding that the group would continue to leverage its retail platform to expand the frontier of the business and retain market leadership.
    “In spite of the tough operating environment the company achieved a 110 per cent increase in the profit after tax from N196.64 million in 2015 to N412.39 million in 2016. The company’s total assets grew by eight per cent from N 12.09 billion in 2015 to N13.09 billion last year. This was supported by the growth in our long-term investment and total current asset,” Makanjuola said.
    He pointed out that the group’s insulation business, Vitapur Nigeria Limited, had overcome the initial start-up challenges to post its first profit in 2016, noting that the hi-tech business remained one of the flagships of the group’s businesses with huge opportunities for tremendous growth.
    He added that the group shall continue to leverage its first -mover status to position Vitapur as a dominant brand in the insulation business within the West African sub-region.
    According to him, another subsidiary, Vitavisco Nigeria Limited, the group’s visco-elastic business, is producing highly specialised products that are complementary to Vitafoam’s core products.
    He noted that with the merger of Vono Products Plc with Vitafoam Nigeria, Vono Furniture Products Limited, which emerged from the merger has commenced business on an encouraging note while the group has repositioned its international businesses in Sierra Leone and Ghana to optimise their profitability.
    In a brief chat with the media, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said the group would remain resilient and continue to prioritise the interest of its shareholders in its business decisions. He assured that, notwithstanding the challenges in the economy, the group would sustain its unbroken record of dividend payment to shareholders.
    According to him, the strategic repositioning exercise undertaken in the previous year has placed the company in a better stead to sustain its competitive edge.
    Shareholders approved the distribution of N125 million as cash dividend for the 2016 business year, representing a dividend per share of 12 kobo. The dividend will be paid on March 9, 2017.

  • Vitafoam Nigeria, Vono Products finalise merger

    •NSE to delist Vono Products  

    Vitafoam Nigeria and Vono Products are set to finalise their merger.

    The two companies have obtained the statutory court order sanctioning their business combination. With the order of the Federal High Court, both companies have entered the concluding phase of the business combination.

    Vitafoam Nigeria and Vono Products had earlier secured approvals of their shareholders, Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for this transaction.

    At the conclusion of the merger process, Vono Products Plc will be dissolved and delisted from the NSE

    The NSE at the weekend indicated that it would suspend trading in the shares of Vono Products Plc as from today. However, transactions will continue on Vitafoam Nigeria as it will become the surviving entity from the merger of the two companies.

    Stakeholders of Vitafoam Nigeria and Vono Products have rooted for the business combination, arguing that it would create better values for shareholders of the two companies and enhance the long-term competitiveness of the larger company.

    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.

    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,’’ Adeniyi said.

     

  • Vitafoam assures shareholders of better returns

    Vitafoam Nigeria Plc has assured shareholders of improved returns in the years ahead in spite of the challenges in the operating environment.

    Chairman, Vitafoam Nigeria Plc, Dr. Dele Makanjuola, who gave this assurance at the company’s annual general meeting, said that despite the uncertain disturbing outlook of the preceding years, the company will remain resolute in the implementation of nascent strategies that will enable the harvesting of low-hanging opportunities in the economy to improve growth prospects across several markets.

    He said the innovation and new products development will be the key drivers of the company’s corporate strategy while the company will remain committed to its brand reposition of “much more than mattress” by broadening the scope of its products offerings across the Vitafoam group.

    According to him, the company has since commenced a new initiative to reduce operating costs and boost shareholder value.

    Makanjuola who reviewed the current challenges facing manufacturing firms in Nigeria noted that Vitafoam was able to remain profitable due to the prudent approach towards management of human and material resources.

    Besides, he said, the manufacturer of flexible ,reconstituted and rigid foam products has almost concluded arrangements to commence production of oil filters and allied motor spare parts through its newly established subsidiary,

    “The foam business is operating in a very competitive environment. There are over 300 manufacturers. It is stressful to operate in the foam industry. As professionals, we have tried to keep administrative and financial cost under control. This prudent approach enabled us to generate profits and declared dividend of 25 kobo per share in an environment where many companies are closing business. We were able to achieve this feat despite the high cost of operation because of our careful management practice.

    “We have almost concluded plan to commence production of oil filter in our new subsidiary. As for Vono Products, we shall keep the brand. We have gone to the Corporate Affairs Commission (CAC) to ensure that the brand is not taken away,” Makanjuola said.

    Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi said that the decision to float a new subsidiary, Vitaparts Nigeria Limited was to provide products for motor spare parts which are in high demand.

    “We shall enjoy pioneer status in the country as there is no manufacturer of these parts yet in the country,” Adeniyi said.

    While Adeniyi who also assured the shareholders of higher value lamented the effects of forex scarcity and imported raw materials on the production of foams in Nigeria.

    He however expressed optimism that Vitafoam would continue to operate optimally as measures have been put in place to strengthen the company’s operations with cost saving approach.

    Many shareholders commended the company’s board and management for the good performance in spite of the tough business environment while some advised for more cost control measures.

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

    ‘Vitafoam Nigeria, Vono Products merger will 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 last week 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.

  • Vitafoam Nigeria’s profit drops by 44.5% in Q3

    Vitafoam Nigeria Plc continued to struggle with slow top-line and tough operating and financing expenses as third quarter earnings showed significant compression in the bottom-line of the foam-manufacturing company.

    Key extracts of the interim report and accounts of Vitafoam Nigeria for the nine-month period ended June 30, 2015 showed that group profit before tax dropped by 44.5 per cent to N521.95 million in 2015 as against N754.17 million recorded in the corresponding period of 2014. Net profit after taxes also declined from N457.8 million to N335.33 million.

    Group turnover had increased marginally from N13.34 billion to N13.84 billion. Gross profit also improved marginally to N4.43 billion in 2015 as against N4.39 billion in 2014. However, operating expenses impinged on the earnings, dropping operating profit from N1.25 billion to N1.08 billion.

    The current performance contrasted sharply with 67 per cent increase in post-tax profit in 2014 after a change in accounts software delayed the group’s full-year accounts and the incumbent managing director and group finance director retired afterward. The company distributed N246 million in cash and additional 164 million shares as cash dividends for the year ended September 30, 2014. Shareholders received a dividend per share of 30 kobo and bonus share of one share for every five ordinary shares held by shareholders.

    Key extracts of the audited report and accounts for the year ended September 30, 2014 showed that profit after tax rose by 67 per cent to N659 million in 2014 as against N395 million recorded in the previous year. Earnings per share subsequently rose by 69 per cent from 48 kobo in 2013 to 81 kobo per in 2014.

    Management report had indicated that the performance was due to increased innovation and improved internal efficiencies. As part of the strategy to strengthen its African operations, Vitafoam had installed modern equipment in its plant in Sierra Leone, which serves all the neighbouring countries including Guinea and Gambia.  Only recently, its subsidiary, Vitapur Nigeria Limited acquired modern equipment called SAIT Advanced Polyurathane to boost production of quality pallets and reinforce capacity utilization.

     

  • Lagos endorses Vitafoam’s new products

    Lagos endorses Vitafoam’s new products

    Lagos State Government has commended the management of Vitafoam Nigeria Plc on its innovativeness by introducing two unique products to prevent nursing mothers from the hazards of breast feeding.

    The two products, Vitafoams Early days Breast feeding Covers and Pillows were specifically  designed to enable nursing mothers maintain proper position for breast feeding devoid of back pain and privacy while breastfeeding in the public.

    Speaking at a special ceremony to mark World Breast feeding Day at Lagos Island Maternity Hospital in Lagos, Lagos State’s First Lady, Mrs Bola Ambode explained that Vitafoam Nigeria Plc had been at the forefront of products aimed at reducing infant mortality in Nigeria.

    Mrs Ambode who was represented by Mrs Ladun Ogunbaniro stated that Vitafoam’s board and management should be appreciated as a good corporate citizen which constantly produces products that address human problems.

    Mrs. Ambode called on the government and other employers of labour to support the initiatives in order to have a better society.

    She reiterated that Lagos State government had increased the maternity leave from three months to six months while there is 10-day paternity leave as a support for proper child care.

    Earlier in his address, Vitafoam’s Group Managing Director, Mr. Taiwo Adeniyi explained that the company had expanded its products’ portfolio from being a manufacturer of just mattresses and pillows into a foremost producer of ultimate comfort products.  According to him, Vitafoam has ventured into production and supply of flexible, semi rigid and rigid polyurethane foam products including furniture, bed and beddings. This expansion gave birth to some of its current subsidiaries: Vitapur, Vitagreen, Vitasco and Vitabloom,” he said.