Vitafoam Nigeria Plc has announced a 30.02 per cent increase in profit before tax to N7.34billion in its audited full year result and accounts for period ended September 30, 2021 as against N5.65billion reported in the prior full year ended September 30, 2020.
The household company on the Nigerian Exchange Limited (NGX) profit after tax for 2021 financial year also grew by 12 per cent to N4.59 billion in 2021 from N4.11billion reported in 2020.
The increase in profits was driven by 51.02 per cent growth in revenue to N35.40billion in 2021 from N23.44billion reported in 2020 and finance income that gained 139 per cent to N254.86million in 2021 from N106.51million in 2020.
Sales of goods (foams and other products) in Nigeria thrust revenue, while Interest on time deposit impacted on finance income in the financial year under review.
In an audited financial statement sent to NGX, the company posted strong earnings in all its performance indicators, despite the tough operating environment in Nigeria.
With scarcity in foreign exchange and hike in inflation rate, the group reported 74.8 per cent increase in cost of sales to N21.73billion in 2021 as against N12.43billion reported in 2020.
Shareholders of a leading manufacturer of rigid foams and other household materials, are expected to approve a robust dividend of N1.88 billion for the company’s performance in the year ended, September 30, 2020, an increase of 114 per cent over N87.59million paid in 2019.
The huge amount, which translates into N1.50 per Ordinary Share has been proposed by the company’s Board to be laid before the shareholders for endorsement during the company’s Annual General Meeting (AGM), scheduled for Thursday, March 3, 2022 and it is expected to be paid paid electronically on Friday, March 4, 2022.
“Vitafoam has consistently demonstrated resilience despite the challenges militating against the manufacturing sector in Nigeria. The company’s current performance is a great improvement over the historical one.”, said the Managing Director, Network Capital, Mr Oluropo Dada.
The Group Managing Director, Vitafoam Nigeria, Mr. Taiwo Adeniyi, has always attributed its consistent strong performance to innovative Board and Management, continuous introduction of multiple products beyond foams and huge investment in Research and Development among others.
The company’s statement to NGX says the business is driven by collective commitment to a culture of integrity, accountability, and transparency.
“We conduct our operations in accordance with good moral and ethical standards while obeying relevant legislations.
“Our goal is to remain a responsible and responsive corporate organization committed to ensuring healthy and comfortable living while contributing positively to the overall growth of the country.” , according to the statement.
