Shareholders of Vitafoam Nigeria Plc have endorsed the proposed a N979.410 million which translates into 70 kobo per Ordinary Shares for the company’s 2020 financial performance, a whopping increase of 64 percent as against the corresponding year.
The elated shareholders, at the hybrid Annual General Meeting (AGM), Thursday, specifically commended the company’s management for the outstanding performance and urged them to sustain it.
The leading manufacturer of rigid foams and other household equipment has announced a 5.2 percent increase in total sales, 8.1 percent drop in cost of sales while the 11.4 percent reduction in finance was a reward for internal cost efficiency.
The company’s After taxes net profit soared by 72 per cent from N2.39 billion to N4.11 billion. Basic earnings per share increased from N1.82 to N3.05 and Net assets per share hit N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.
The Directors have proposed a cash dividend of 70 kobo per share as against 42 kobo paid in 2019.
“ I commend Vitafoam’s declaration of 70 kobo dividend per share. The company’s dividend has been on upward trend in the last three years. The company’s Board and Management have demonstrated capacity to compete globally, despite the challenges in the operating environment.”, says a member of Independent Shareholders’ Association of Nigeria, Ayodele Kudaisi, while commenting on the company’s performance during the AGM.
Corroborating her, Nona Awoh, a shareholder who also showered encomiums on the company’s stella performance, urged the Board and Management to consider the need to commence interim dividend to further boost the shareholders’ Return On Equity (ROE).
The Chairman of Vitafoam Nigeria Plc, Bamidele Makanjuola, in his response, explained that the company’s performance was driven by topnotch human capital who have demonstrated innovative tendencies and global competitiveness in all metrics.
“The Company is blessed with young and vibrant staff. We will drive innovative strategies to sustain growth and profitability despite immense environmental challenges.
We remain upbeat about the quality of our product range and will continue to invest in capacity- building and products development as pathways to sustaining market leadership. I am confident that the uniqueness of our offerings, incredible brands, and the Company’s cost optimization approach will further strengthen our overall business performance, with resultant improvement in returns to all our shareholders “ says Makanjuola.
The Group Managing Director, Taiwo Adeniyi had earlier noted that the company placed premium on product improvement. “As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products. We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.
“ We launched Buy Rights, last year, when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counseling to advise on the specific foam for individual customers. This has greatly endeared us to our customers.“ Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam. Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State government as our corporate support.”, Adeniyi said.