Vitafoam Nigeria Plc, a leading manufacturer of rigid foams and other household materials has rewarded its shareholders with N1.9 billion dividend following its stellar performance in 2021, despite the harsh operating environment.
The dividend, which translated into N1.50 per share was promptly approved by the shareholders at the company’s hybrid 60th Annual General Meeting (AGM) at the weekend.
Addressing the shareholders at the AGM, Vitafoam’s Chairman, Bamidele Makanjuola explained that the company achieved strong performance through a flexible financing strategy and excellent customer service.
“This impressive performance was driven by improved operational efficiency, excellent customer service, a business-friendly funding window and steadfast implementation of our strategic initiatives. During the financial year, the company facilitated programmes that enhanced the quality and aesthetics of our products, enlarged the customer base, boosted technology investments to spur retail sales, and strengthened our distribution channels.
“The success achieved was due to the implementation of a flexible financing strategy aided by the Bank of Industry loan, as well as cost maximisation through internal efficiency gains. Through the deployment of fresh initiatives to expand our business frontiers, we shall remain innovative and customer-focused while vigorously driving internal efficiencies in all our operations. By so doing, we aim to drive up shareholder value in the interest of all stakeholders,” Makanjuola said.
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Shareholders commended the company’s brilliant performance. The leader of Independent Shareholders Association, Adebayo Adeleke said the company had a bright future as all its subsidiaries have become profitable. Corroborating him, the President, Noble Shareholders Solidarity Association, Mathew Akindele stated that Vitafoam’s policy of attracting people of value to its board could be attributed to its exceptional performance.
The Group Managing Director and Chief Executive Officer, Taiwo Adeniyi had in the past attributed the company’s consistent performance to its policy of putting its diverse customers at the centre of Research and Development. Adeniyi also explained that beyond foams, Vitafoam produces a range of building materials.
The company’s subsidiaries are Vitapur, Vitablom, Vitavisco, Vono, Vitaparts and Vitafoam SierraLeone.
“Notwithstanding the challenging business environment, it is gratifying to inform you that your company posted a brilliant performance in the year under review. The Group’s turnover improved from N23.4billion in the 2020 financial year to N35.4billion in 2021. Profit before tax grew from N5.64billion to N7.34 billion while profit after tax also increased from N4.1 billion to N4.5 billion. Meanwhile, the turnover of our parent company, Vitafoam, increased from N21.5 billion in the 2020 financial year to N32 billion in 2021. Profit before tax rose from N4.9 billion in 2020 to N6.7 billion in 2021 while profit after tax grew N3.4 billion to N4.3 billion,” Makanjuola said.
