Rising FX cost impacts Vitafoam profit despite 56% rise in Q3 revenue

Vitafoam Nigeria Plc unaudited interim financial results for the nine months (9M) to September 30, 2024 indicate revenue of N82.58billion as against N52.99 billion in the preceding year, representing an increase of 56 percent.

The group also posted an operating profit of N7.54 billion as against N6.99 billion in the corresponding year. Moderated by high cost of forex (FX) and other operational expenses, the Group’s Profit Before Tax (PBT) declined from N6.01 billion to N1. 525 billion while the cost of sale rose from N35.04 billion to N52.54 billion. At the Nigerian Bourse, Vitafoam share price closed flat on October 30 at N20.

Following this outing in the review period, Vitafoam has assured the investing public of its commitment to delivering values despite the challenging operating environment, characterised by high operating costs and low consumer purchasing power. Vitafoam is the leading manufacturer of reconstituted foams and household materials.

Read also: Dangote Sugar Refinery’s loss widens to N184.4bn on higher finance cost

“Vitafoam has always navigated challenging environments before and emerged stronger. We are taking proactive measures to mitigate current challenges and capitalize on emerging opportunities. Our focus remains on delivering sustainable value to our shareholders, customers, and stakeholders.

“We are working diligently to improve operational efficiency. Our diversified product portfolio will drive future growth. Our innovative products and strategic investments will enhance competitiveness.”, says the Group Managing Director and Chief Executive Officer, Taiwo Adeniyi.

Over 95 percent of Vitafoam’s sales are made in Nigeria and the company’s six subsidiaries are up and running. The subsidiaries are: Vitafoam Sierra Leone Limited; Vitapur Nigeria Limited; Vitablom Nigeria Limited; Vitavisco Nigeria Nigeria Limited; Vono Funiture Products Limited. and Vitaparts Nigeria Limited.