Vitafoam hits 52-week high as investors position for 70kobo final dividend

The shares of Vitafoam Nigeria Plc were on demand on Monday January 4 being the first trading day in 2021 as investors moved to take position in the company following its proposed final dividend of 70kobo per share.

The stock price reached 52-week high of N8.55 after it rose by 75kobo or 9.62percent, the Nigerian Stock Exchange (NSE) trading data showed.

The final dividend which is subject to approval will be paid to shareholders whose names appear on the register of members at the close of business on Friday February 12, 2021. The proposed final dividend represents 67percent increase when compared to 42kobo the company paid in 2019.

The register of shareholders will be closed from Monday February 15 to Friday February 19, 2021. The manufacturer of foam products in Nigeria reported in its recently released consolidated and separate financial statements for the year ended September 30, 2020 group revenue increase by 5percent to N23.443billion from N22.283billion in 2019.

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Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible, reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just in time delivery of finished products throughout West African Sub region.

The proposed dividend which amounted to N979.410million as against N595.434million in 2019, represent 64percent increase.

Analysis of the shareholding of Vitafoam Nigeria Plc shows shareholders who held more than 5 percent of the issued share capital as at September 30, 2020. Bolarinde Samuel Olaniyi holds 148,532,634 units representing 11.87percent while, Awhua resources Limited owns 98,281,981 units or 7.86percent. The company has 1,250,844,064 outstanding shares

Profit before income tax increased to N5.646billion from N3.495billion in 2019, up by 62percent. The group profit for the year grew by 72percent to N4.107billion from N2.386billion in 2019. In the review financial year, Vitafoam’s basic earnings per share increased to N3.05 from N1.82 in 2019, up by 69percent.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.