• Wednesday, February 21, 2024
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Vitafoam proposes N1.9bn dividend payout as earnings grow

Vitafoam proposes N1.9bn dividend payout as earnings grow

In line with Vitafoam Nigeria Plc policy of shareholder value, its board has proposed a dividend payout of N1.9billion which translates to N1.56 kobo per Ordinary Share of 50 kobo each for the shareholders.

The board will be seeking approval of shareholders at the company’s Annual General Meeting (AGM) scheduled to hold in Lagos on March 7, 2024.

The company has grown its revenue to N52.9 billon in 2023, from N46.3 billion in 2022, an increase of 14 percent despite the headwinds that characterised the operating environment.

The Company’s total assets in the review period also rose to N49.6 billion from N39.4 billion in 2022.

Market watchers commended the Company’s performance against the backdrop of the tough operating environment . ” When it is weighed against the headwinds militating against the operations of manufacturers in Nigeria, Vitafoam’s performance shows corporate resilience.

“Manufacturers in Nigeria contend with a sharp decline in the Naira exchange rate relative to other major currencies, paucity of foreign exchange to import some raw materials, high cost of energy, weak purchasing power and low disposable income of consumers, rising inflation and devaluation of the Naira among others have always made the operating environment tough,” said a market watcher.

Determined to sustain its high performance , only recently, Vitafoam installed a multimillion machine in its subsidiary- Vitablom in Jos to boost turnover , profitability and increase market share.

Taiwo Adeniyi, Group Managing Director, Vitafoam Nigeria Plc has always emphasised that Vitafoam placed premium on Research and Development. According to him, the topnotch products of the company are designed to address specific needs of its diverse customers.

As a good corporate citizen , Vitafoam invests heavily in the Education and healthcare sectors to give back to the society through its strong Corporate Social Responsibility (CSR) policy.