The Nation Newspaper

Tag: Vitafoam

  • Vitafoam opens in Warri

    Vitafoam Nigeria Plc has launched its second major sales outlets otherwise known as Comfort Centre, in Warri, Delta State, to boost sales.

    Addressing key distributors at the inauguration at the weekend, Group Managing Director,  Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, said the second Comfort Centre in Warri was aimed at meeting the increasing demand for the company’s products.

    “Vitafoam Comfort Centre is a retail concept born out of need to providing convenience and complete solution for our esteemed customers’ needs for premium comfort, wellness and relaxation. It is an experimental centre where our esteemed customers view, appreciate and experience Vitafoan products in use and the world of Vitafoam,” Adeniyi said.

    He said all the company’s products could be purchased at the  centre, including premium health and baby products such as spring mattress, twill, cot, sofa and mat.

    He pointed out that over the years, Vitafoam had moved from being a household name in the production of just mattresses and pillows into being a foremost provider of ultimate comfort products.

    He commended the distributors for their consistent loyalty and assured them of regular production of top-class products at competitive prices.

    Chairman of the occasion, Engineer Eugene Eze expressed gratitude to Vitafoam for sustaining its leadership position through production of quality products that can compete with any of its peers worldwide.

     

  • Vitafoam to produce panels

    Vitafoam Nigeria Plc is set to begin the mass production of sandwich panels for the construction industry, following installation of continuous panel production plant.

    Speaking in Lagos, Chairman,  Vitafoam, Dr. Bamidele Makanjuola, said the company is positioned to take advantage of untapped potential in the construction industry, saying: “In the current financial year, we expect our rigid polyurethane subsidiary (vitapur) to come on full steam with the installation of continuous panel production plant and commencement of mass production of sandwich panels for the construction industry.

    “The System House Project of this subsidiary, assisted by the UNDP, is also expected to commence commercial blending of chemical for the industry.

    “The current global trend in housing construction and the upswing of inquiries and nascent patronage from government (at both the federal and the state levels) and the private sector should bolster the contribution of this subsidiary to our overall growth in the year ahead”.

    He pointed out that the year under review was characterised by uncertainties arising from insecurity to tightening of monetary policy by the CBN which left commercial activities paralysed, especially in the North-Central and North-east geopolitical zones where companies, including vitafoam distributors have been displaced and left adrift.

    The directors explained that the Vitapur in partnership with the UNDP pioneered a chemical blending factory as a unit of the operations of the company. They stated further that the project when completed, will afford vitapur the opportunity to sell chemicals to other producers of sandwich polyurethane in Nigeria and West Africa sub region using environmentally friendly raw materials.

  • Vitafoam Nigeria to absorb Vono Products

    Vitafoam Nigeria to absorb Vono Products

    Vitafoam Nigeria Plc has launched a bid to absorb the operations its age-long competitor, Vono Products Plc, in a bid that will further establish Vitafoam Nigeria as the main foam and bedding manufacturing company in Nigeria.

    A regulatory document obtained by The Nation indicated that Vitafoam Nigeria, which had in August 2010 acquired majority shareholding in Vono Products, has started pre-merger processes to absorb the operations of Vono Products.

    Vitafoam Nigeria is already in the process of filing the requisite documents for the scheme of merger with the Securities and Exchange Commission (SEC). SEC, the apex capital market regulator, is statutorily empowered to vet mergers and acquisitions and other primary transactions.

    Both Vitafoam Nigeria and Vono Products, which are quoted on the Nigerian Stock Exchange (NSE), have notified the management of the Exchange about the impending merger. The business combination may however lead to the delisting of Vono Products, leaving Vitafoam Nigeria as the only quoted foam-manufacturing company.

    With vast assets and similar business lines, Vitafoam Nigeria is seeking to absorb Vono Products to reduce operation costs and enhance the synergies inherent in the expanded business.

    Vitafoam Nigeria holds 47.5 per cent in Vono Product after the former had increased its majority equity stake during a rights issue in 2012.

    Vitafoam Nigeria had in August 2010 acquired majority shareholding in Vono Products and took over the board and management of the company. Vitafoam Nigeria then held 24.96 per cent equity stake in Vono, giving it the majority but less than outright controlling equity stake. Other significant investors in Vono then were Enterprise Bank and BGL which held 5.56 per cent and 7.37 per cent respectively.

    Vono Products in 2012 launched a N840 million rights issue to strengthen its operations and pursue expansion programme as part of efforts to emplace the company on the path of sustainable profitability.

    Vono offered 525 million ordinary shares of 50 kobo each at N1.60 per share to pre-qualified shareholders on the basis of seven new shares for every four shares held as at October 31, 2011. Vitafoam Nigeria took advantage of the rights issue to increase its majority equity stake to 47.5 per cent.

    With the rights issue, Vono Products had raised the prospects of continuing as a stand-alone subsidiary. The company had indicated that it would use the net proceeds of the rights issue to strengthen its operations and pursue expansion programme.

    Specifically, the net proceeds were to be used to upgrade the factory, buy new plants and machineries and boost its working capital among others. The additional capital was meant to reduce the company’s dependence on banks for funding to finance its operations.

    Both Vono Products and Vitafoam Nigeria have continued to struggle with sluggish sales and depressed margins. First quarter report for the period ended December 31, 2014 showed that Vono Products grew sales to N215.15 million in December 2014 as against N193.16 million in comparable period of 2013. The company made a profit before tax of N570,000 as against loss of N4.52 million in 2013. After taxes, net loss stood at N410,000 compared with N5.63 million in corresponding period of 2013.

    Vitafoam Nigeria showed improved performance in 2014 after it restated its accounts. Vitafoam Nigeria had delayed its 2014 audited report citing change in its accounting software.

    According to the company, the delay was as a result of challenges associated with its migration from Sage Line 500 accounting software to the newly acquired Sage ERP X3 Package. Vitafoam stated that the implementation of the new software impacted the timelines previously set for the preparation and audit of the year end accounts.

    The restated 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. Shareholders of Vitafoam Nigeria Plc would receive about N246 million in cash and additional 164 million shares as cash dividends for the business year. Shareholders would receive a dividend per share of 30 kobo and bonus share of one share for every five ordinary shares held by shareholders.

    Management report 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 utilisation.

    However, the release of the audited earnings report came almost simultaneously with the announcement of the retirement of the group managing director and group finance director of the company. The board of directors announced the appointment of Mr. Taiwo Adeniyi as the acting group managing director following the approval of the retirement of Mr. Joel Ajiga. Both Ajiga and Mr. Brabindoh Ogun, the Group Finance Director, are expected to retire on October 23, this year. Ajiga has since commenced his pre-retirement leave with effect from April 23.

    Adeniyi, who is expected to lead the business integration, holds a BSc (Chemistry) and MSc (Pharmaceutical Chemistry) from the University of Lagos and MSc (Engineering and Logistics) from the University of Warwick, United Kingdom. He joined the Vitafoam Group in 2007 and was appointed to the board in July 2012.

    Prior to his new appointment, he was the Group Technical & Development Director.

  • Vitafoam gets new acting CEO

    The Board of Directors of Vitafoam Foam Plc has announced the appointment of Mr. Taiwo Adeniyi as the acting managing director/chief executive officer of the company, following the approval of the board of the retirement of Mr. Joel Ajiga who is set to exit as the group managing director of the company from October, this year.

    According to a notification sent to the Nigerian Stock Exchange (NSE), the board said it met and approved the retirement of Ajiga. However, he is said to have commenced his pre-retirement leave with effect last week.

    Similarly, Mr. Brabindoh Ogun is set to retire from the company as the Group Financial from October.

    According to the company Mr. Adeniyi holds a BSc (Chemistry) and MSc (Pharmaceutical Chemistry) from the University of Lagos and MSc (Engineering and Logistics) from the University of Warwick, United Kingdom.

    He joined the Vitafoam Group in 2007 and was appointed to the Board in July 2012. Prior to his appointment, he was Acting Group Managing Director/CEO, Mr. Adeniyi was the Group Technical & Development Director.

    Meanwhile, the stock gained N0.04 representing 0.91 per cent to close at N4.44 yesterday.

    Vitafoam explained that the release of its audited report and dividend recommendation was delayed by the change in the company’s accounting software.

    The public has been awaiting the release of Vitafoam’s earnings report for the year ended September 30, last year. The board of directors had earlier indicated that it would consider the accounts and report and make dividend recommendation at its meeting in December, last year.

    However, the board yesterday said there would be a delay in the release of the company’s audited financial statements for the year ended September 30, 2014 and the unaudited accounts for the first quarter ended December 31, last year.

    According to the company, the delay is as a result of challenges associated with its ongoing migration from Sage Line 500 accounting software to the newly acquired Sage ERP X3 Package.

    Vitafoam noted that the implementation of the new software has impacted the timelines previously set for the preparation and audit of the year end accounts. It expressed optimism that the accounting issues would be resolved satisfactorily soon.

  • Vitafoam eyes auto industry

    Vitafoam eyes auto industry

    Mattresses and pillows, maker Vitafoam is gearing up to become a key player in the auto industry by tapping into the newly- introduced auto policy, its Group Managing Director (GMD), Mr. Joel Ajiga, has said.

    Ajiga, an engineer, told The Nation that the company plans to play in the low injection part of the auto industry through its subsidiary, Vita Visco, to manufacture vehicle parts, such seats, dash boards and others.

    The GMD, who spoke in his office in Lagos, however, said his company was faced with myriad of challenges, such as infrastructural deficit, especially epileptic electricity supply and bad roads, which affect the company’s manufacturing and supply chain and eats into its bottom line.

    He said bad condition of the roads means bad business for the company as goods are transported across the country by road. He therefore, called on government to work on the road infrastructure to reduce the cost of transportation of finished products and repairs of damaged vehicles.

    Ajiga also said over 60 per cent of the energy utilisation in the company’s factory is self-sourced at huge cost, urging the Federal Government to ensure that Nigerians and the industrial sector get the full benefits of the unbundling of the power sector.

    According to him, manufacturers can only key into the government’s Transformation Agenda if the policies are beneficial to their operations.

    He further stated that because of the dwindling disposable income of most Nigerians, there is a limit to how much cost manufacturers can transfer to consumers as part of inward-looking, cost-cutting strategy to stay afloat.

    The company’s Finance Director, Mr. Bras Ogun, said that for the company to play effectively in the auto sector there was need to revive the nation’s petrochemical industry. He regretted that the devaluation of the local currency increased the price of base materials from the petrochemical industry, which are unfortunately imported into the country despite the fact that Nigeria is an oil exporting country.

    “The devaluation has caused a price differential of about N35 in our base material. It will affect the bottom line for this year. Our plan is to start producing some of the chemicals locally and also look at other cost cutting measures. This singular policy has made negative impact, but we are trying to keep the cost of operation as low as possible.

    “We want to cushion our pricing model through our reserves, which acts as shock absolvers. In that scenario, we will not need to pass the cost to our consumers because our creativity and innovativeness will always put us on the leading edge of the nation’s economic growth and development,” Ogun added.

    Corporate Service Director, Vono Products Plc, one of the company’s subsidiaries, Mr. Tunde Anjorin, said the firm has since transformed into a vibrant company manufacturing hard furnishing, conventional and security doors for schools, hotels for basic and luxurious comfort, satisfying all segments of the society.

    The company’s Head of Sales, Shola Owoade, said the firm is exploiting polymer to produce most of its products such as prefabricated buildings and insulated structures, which conserves energy and reduces cost.

    He said the company is also building pre-fabricated structures for mass housing already in use in Osun State to build classrooms using polymer as base material.

    On the export arm of the business, the Vitafoam boss said that the company has built a-state-of–the-art production complex in Sierra Leone, which will soon start operation. The company also has a trading outfit in Ghana.

  • Investors wait for Vitafoam’s dividend

    Vitafoam Nigeria Plc will soon announce its dividend for the immediate past year, according to the company’s traditional payment pattern.

    Directors of the foam-manufacturing company had met late last month to consider the financial and operational reports of the foam-manufacturing company. One of the top agenda for the meeting was consideration of the appropriate dividend to be recommended for payment to shareholders.

    At the meeting, the board was scheduled to consider and approve the audited financial statements of the company for the year ended September 30, 2014.

    Vitafoam had announced its dividend for the year ended September 30, 2013 in January 2014, sustaining a cycle of regular payment and general meeting.

    The meeting had also considered the date, time and venue for the annual general meeting as well as closure and payment dates for the dividend recommendation.

    Vitafoam Nigeria has almost predictable pattern. It has been holding its annual general meeting around Ikeja, within the vicinity of its head office. It has also retained its dividend payment rate, in spite of stunted earnings.

    While the details of the earnings are still not available, there are strong indications that the company will sustain its unbroken dividend payment record.

    For the past four consecutive years, the company has distributed annually N246 million as cash dividends to shareholders. Usually, shareholders would receive a dividend per share of 30 kobo for the business year.

    Audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2013 had indicated that sales rose by 12.8 per cent but pre and post tax profits dropped by 22.5 per cent and 18.2 per cent respectively. The largest growth on the profit and loss accounts remains finance expenses, which rose by about 40 per cent. With basic earnings per share dropping from 61 kobo to 50 kobo, the retention of the 30 kobo dividend payout cut dividend cover from 2.03 times to 1.67 times. This downtrend is also evident in the underlying returns and profitability of the company.

    Group’s total sales closed 2013 at N16.34 billion compared with N14.48 billion recorded in 2012. Cost of sales however rose by 16.4 per cent from N9.34 billion to N10.87 billion. Gross profit thus inched up by 6.3 per cent from N5.14 billion to N5.47 billion. Total operating expenses rose by 9.8 per cent to N4.34 billion as against N3.95 billion in previous year. Distribution cost had increased from N945.19 million in 2012 to N955.83 million in 2013 while administrative expenses rose from N3.0 billion to N3.38 billion. Non-core business income increased by 13 per cent from N146 million to N165 million. However, finance expenses jumped by 39.7 per cent to N661 million as against N473 million in previous year. With these, profit before tax dropped by 22.5 per cent from N813 million to N630 million. After taxes, net profit dropped by 18.2 per cent to N410 million in 2013 compared with N502 million in 2012.

    Underlying ratios showed similar outlook. Gross profit margin dropped to 33.5 per cent as against 35.5 per cent in 2012. Profit before tax margin also dipped to 3.9 per cent compared with 5.6 per cent in previous year. Average return on total assets declined from 7.9 per cent to 6.3 per cent while average return on equity dropped from 17.2 per cent to 13.2 per cent.

  • Vitafoam to decide dividend payment tomorrow

    Shareholders of Vitafoam Nigeria Plc would by the weekend know the amount to be distributed to them as cash dividends for the immediate past business year as directors of the foam-manufacturing company meet tomorrow.

    The board meeting, scheduled for Lagos, will consider the financial and operational reports of the foam-manufacturing company. One of the top agenda for the meeting is consideration of the appropriate dividend to be recommended for payment to shareholders.

    At the meeting, the board will consider and approve the audited financial statements of the company for the year ended September 30, 2014. While the details of the earnings are still not available, there are strong indications that the company will sustain its unbroken dividend payment record.

    The meeting will also consider the date, time and venue for the annual general meeting as well as closure and payment dates for the dividend recommendation.

    Vitafoam Nigeria has almost predictable pattern. It has been holding its annual general meeting around Ikeja, within the vicinity of its head office. It has also retained its dividend payment rate, in spite of stunted earnings.

    For the past four consecutive years, the company has distributed annually N246 million as cash dividends to shareholders. Usually, shareholders would receive a dividend per share of 30 kobo for the business year.

    Audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2013 had indicated that sales rose by 12.8 per cent but pre and post tax profits dropped by 22.5 per cent and 18.2 per cent. The largest growth on the profit and loss accounts remains finance expenses, which rose by about 40 per cent. With basic earnings per share dropping from 61 kobo to 50 kobo, the retention of the 30 kobo dividend payout cut dividend cover from 2.03 times to 1.67 times. This downtrend is also evident in the underlying returns and profitability of the company.

    Group’s total sales closed 2013 at N16.34 billion compared with N14.48 billion recorded in 2012. Cost of sales however rose by 16.4 per cent from N9.34 billion to N10.87 billion. Gross profit thus inched up by 6.3 per cent from N5.14 billion to N5.47 billion. Total operating expenses rose by 9.8 per cent to N4.34 billion as against N3.95 billion in previous year. Distribution cost had increased from N945.19 million in 2012 to N955.83 million in 2013 while administrative expenses rose from N3.0 billion to N3.38 billion. Non-core business income increased by 13 per cent from N146 million to N165 million.

    However, finance expenses jumped by 39.7 per cent to N661 million as against N473 million in previous year. With these, profit before tax dropped by 22.5 per cent from N813 million to N630 million. After taxes, net profit dropped by 18.2 per cent to N410 million in 2013 compared with N502 million in 2012.

    Underlying ratios showed similar outlook. Gross profit margin dropped to 33.5 per cent as against 35.5 per cent in 2012. Profit before tax margin also dipped to 3.9 per cent compared with 5.6 per cent in previous year. Average return on total assets declined from 7.9 per cent to 6.3 per cent while average return on equity dropped from 17.2 per cent to 13.2 per cent.

  • Vitafoam’s directors meet on dividend payment

    Directors of Vitafoam Nigeria Plc are scheduled to meet next week to consider the financial and operational reports of the foam-manufacturing company. The meeting is expected to consider the appropriate dividend to be recommended for payment to shareholders.

    At the meeting, the board will consider and approve the audited financial statements of the company for the year ended September 30, 2014. While the details of the earnings are still not available, there are strong indications that the company will sustain its unbroken dividend payment record.

    The meeting will also consider the date, time and venue for the annual general meeting as well as closure and payment dates for the dividend recommendation.

    Vitafoam Nigeria has almost predictable pattern. It has been holding its annual general meeting around Ikeja, within the vicinity of its head office. It has also retained its dividend payment rate, in spite of stunted earnings.

    For the past four consecutive years, the company has distributed annually N246 million as cash dividends to shareholders. Usually, shareholders would receive a dividend per share of 30 kobo for the business year.

    Audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2013 had indicated that sales rose by 12.8 per cent but pre and post tax profits dropped by 22.5 per cent and 18.2 per cent respectively. The largest growth on the profit and loss accounts remains finance expenses, which rose by about 40 per cent. With basic earnings per share dropping from 61 kobo to 50 kobo, the retention of the 30 kobo dividend payout cut dividend cover from 2.03 times to 1.67 times. This downtrend is also evident in the underlying returns and profitability of the company.

    Group’s total sales closed 2013 at N16.34 billion compared with N14.48 billion recorded in 2012. Cost of sales however rose by 16.4 per cent from N9.34 billion to N10.87 billion. Gross profit thus inched up by 6.3 per cent from N5.14 billion to N5.47 billion. Total operating expenses rose by 9.8 per cent to N4.34 billion as against N3.95 billion in previous year. Distribution cost had increased from N945.19 million in 2012 to N955.83 million in 2013 while administrative expenses rose from N3.0 billion to N3.38 billion. Non-core business income increased by 13 per cent from N146 million to N165 million. However, finance expenses jumped by 39.7 per cent to N661 million as against N473 million in previous year. With these, profit before tax dropped by 22.5 per cent from N813 million to N630 million. After taxes, net profit dropped by 18.2 per cent to N410 million in 2013 compared with N502 million in 2012.

    Underlying ratios showed similar outlook. Gross profit margin dropped to 33.5 per cent as against 35.5 per cent in 2012. Profit before tax margin also dipped to 3.9 per cent compared with 5.6 per cent in previous year. Average return on total assets declined from 7.9 per cent to 6.3 per cent while average return on equity dropped from 17.2 per cent to 13.2 per cent.

     

     

  • Hip-hop star, Vector Tha Viper unveiled as Vitafoam ambassador

    Hip-hop star, Vector Tha Viper unveiled as Vitafoam ambassador

    Nigeria’s foremost rap act, Vector Tha Viper, who was recently named ambassador of Lagos Chamber of Commerce and Industry (LCCI), has also been unveiled as ambassador by Nigeria’s comfort brand, Vitafoam.

    The ceremony took place at the company’s headquarters, Oba Akran Industrial Estate in Ikeja, Lagos.

    Mr. Joel Ajiga, Managing Director of Vitafoam said; “ We want to place Vitafoam as the crème de la crème brand in the heart of every family and Vector cut across 80 percent of our market which is the young minded people. Choosing Vector was a unanimous choice, his style of music is unique and we feel his impact as a youth.”

    “I am super excited to be an ambassador of this premium brand,” said the artiste.

  • Vitafoam boss urges African leaders monitor socio-economic development

    Vitafoam boss urges African leaders monitor socio-economic development

    The Chairman of Vitafoam PLC, Mr. Dele Makanjuola has charged government across the West African sub-region to regularly measure the various indices that are needed for economic planning and development in the region.

    Makanjuola made this known recently at the business luncheon/ commissioning of Wellness Centre by the Business Club Ikeja (BCI).

    According to the Vitafoam boss, there is need for members of the Economic Community of West African States to continuously measure their economic policy and its effect on the society for sustainable development within the sub-region.

    While noting that although there are abundance of human, land, energy and mineral resources across the sub region, he said: “As of today, there exist a very high level of poverty and social inequalities which is all pervading with close to 60% of the population lives on less than one US dollar per day.”

    Makanjuola opined that in spite of government propagandas that there is absence of liberal economy in the sub-region, “anti market, anti-trade, pro-subsidy and pro-regulation policies of the various governments are strangulating the economies.”

    Corruption, Makanjuola observed, “is endemic across the nations, weak institutions, low morale of citizens and undeveloped sense of public service, perennial conflict within nations and between nations slow down execution of regional development projects.”

    “There is a need for structural transformation to bring about economic growth. We should take note that economic development can be achieved only through continuous technological innovation, industrial upgrading and diversification”, he said.

    Earlier in his words, the president of the BSC, Engineer I. S Tella, who applauded members of the club and especially Vital Foam Plc for the construction of the centre, said that the wellness centre is aimed at repositioning the club for revenue generation and encouraging Nigerians to keep fit.

    He encouraged members of the club to take advantage of the centre by utilising the centre rather than leave it more to the public.