Vitafoam declares N1.31bn dividends, shareholders delighted

Vitafoam Nigeria Plc, leading manufacturer of flexible, reconstituted foams, have declared N1.31 billion as dividends for its shareholders.

This translates into N1.05 per ordinary share for the financial year ended Sept. 30, 2024.

Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, made this known on Friday in Lagos, in a communique issued at the end of the company’s Annual General Meeting (AGM).

Adeniyi said the company’s strategic focus on operational efficiency, innovative product offerings, and customer satisfaction enabled it to navigate the challenging environment and achieve significant growth.

He expressed optimism about the future and said he was confident that Vitafoam’s strategies would continue to yield positive results.

“The Group’s turnover hit N82.6 billion in September 2024, an increase of 56 per cent over N52 .9 billion posted in 2023.

“However, the surge in revenue was moderated by foreign exchange loss which impacted some of the components of earnings,” he said.

Vitafoam Nigeria Chairman, Zakari Sada, said that appropriate strategies had been put in place to position the company for stellar performance.

He noted that in spite of the challenges in the business environment, the company sustained the trend of growth.

According to him, the group’s turnover improved from N52.9 billion in the 2023 financial year to N82.6 billion in 2024; a 56 per cent growth.

“The surge in revenue attests to the strength and acceptability of the Vitafoam Brand.

“Regrettably, the positive top-line performance was undermined by the huge foreign exchange loss posted during the year, due majorly to impact of harmonisation of exchange rate.

“I would like to assure you of a bright light at the end of the tunnel as strategies are already being implemented to mitigate the impacts of these external factors on our business going forward,” he said.

Meanwhile, the company’s shareholders expressed delight over the declaration of N1.31 billion as dividend.

A shareholder, Pastor Adebayo Adeleke, commended the company’s board and management for weathering the storm of 2023/2024 to declare dividend for shareholders .

Adeleke noted that resolving to give dividend in spite of the challenging business environment showed that the company had the interest of its shareholders at heart.

“With the impressive performance of the subsidiaries, we are becoming a conglomerate.

“There is a need to strengthen the board structure of the subsidiaries,” Adeleke stated.

Bisi Bakare, National Coordinator, Pragmatic Shareholders Association of Nigeria, noted that Vitafoam’s performance in spite of the tough operating environment could be ascribed to a legacy of excellence over the years.

Bakare also called for more women inclusion in the board’s constitution to promote gender -balancing and enhance corporate governance.