• Wednesday, December 25, 2024
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Vitafoam targets N1.375bn dividend payout

Vitafoam targets N1.375bn dividend payout

Vitafoam Nigeria Plc has proposed a dividend of N1.05 per share, amounting to N1.375 billion.

The company will be seeking approval by shareholders at its 63rd Annual General Meeting (AGM), scheduled for March 6, 2025 in Lagos.

In a statement released to the Nigerian Exchange Limited (NGX) for the year ended September 30, 2024, the company’s gross profit significantly rose to N30billion in 2024 from N17billion, an increase of 76.5 percent.

However, due to the foreign exchange loss of N12.7 billion in the review period, the profit before tax declined from N6billion to N1.145 billion.

Although the operating profit increase from N6.9 billion to N7.6 billion, this was moderated by the huge finance cost of N7.1billion which depressed the Profit Before Taxation to N1.1billion from N6billion last year.

The Earnings Before Tax, Interest Depreciation and Armotisation (EBTIDA) also rose from N7.9 billion in 2023 to N8.3 billion in 2024 financial year.

The group’s net asset, a major performance indicator of corporate growth, has shot up to N25billion in 2024 from N17billion in the previous year, an increase of 47 percent.

The company’s six subsidiaries- Vitafoam Serria Leone Limited; Vitapur Nigeria Limited; Vitablom Nigeria Limited; Vitavisco Nigeria Limited; Vono Furniture Products Limited. and Vitaparts Nigeria Limited are well-positioned for quality services and products.

“Our impressive performance was moderated by the cost incurred on forex,” said Taiwo Adeniyi, Group Managing Director, Vitafoam Nigeria Plc who underscored the Company’s resilience and commitment to shareholder value.

“But the worst is over on the challenges of forex with the liberalisation policy of the federal government. As a good corporate citizen, we decided to reward our shareholders with dividend of N1.05 per share despite the loss incurred in the forex”.

“Our diversified product portfolio will drive future growth while strategic investments backed by research will enhance our competitiveness”, says the Group Managing Director and Chief Executive Officer.

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. 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).

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