Vitafoam Shareholders Approve N125m Dividend, Commend Performance

Shareholders of Vitafoam Nigeria Plc yesterday approved the N125 million dividend recommended by the board of directors for the year ended September 30, 2016. The dividend, which translate to 12 kobo per share, was approved by the shareholders at company’s 55th annual general meeting (AGM) in Lagos. The shareholders also commended the directors on improved performance recorded amidst challenging operating environment.

In his address to the shareholders, Chairman of Vitafoam Nigeria Plc, Dr. Bamidele Makanjuola said 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.

According to him, the company’s total assets grew by eight per cent from N 12.09 billion in 2015 to N13.09 billion last year.

Makanjuola, who said the Nigerian business environment had experienced severe headwinds in recent time, attributed the positive performance of the company to its strategic repositioning efforts.

He said the company’s insulation business, Vitapur Nigeria Limited, had overcome the initial startup challenges to post its first profit during the financial year.

“This hi-tech business remains one of the flagships of our business with huge opportunities for tremendous growth. We shall continue to leverage our first -mover status to position the company as a dominant brand in the insulation business within the West African sub-region,” he said

The chairman stated that another fruit of strategic repositioning, Vono Furniture Products Limited, which emerged as a subsidiary following the recent merger of Vitafoam and Vono Products Plc had commenced business on an encouraging note.

According to him, another subsidiary, Vitavisco Nigeria Limited, the

Cisco-elastic arm is now producing highly specialised products that are complimentary to Vitafoam’s core products.

He disclosed that the ongoing strategic repositioning would strengthen Vitafoam’s operations in Sierra-Leone, Liberia, Guinea and Ghana.

According to him, the company is currently evaluating its business strategy in Ghana “with a view to make Vitafoam the brand of the first choice increased market presence,” he said

The Group Managing Director/ Chief Executive Officer, Vitafoam Nigeria, Mr Taiwo Adeniyi had earlier said the company would continue to introduce innovative products to enhance shareholder value.

According to him, the challenging operating environment notwithstanding, the company would ensure payment of dividend to the shareholders.

Adeniyi expressed optimism that a strategic repositioning exercise had been put in place to sustain the company’s competitive edge.