Vitafoam Nigeria, a leading manufacturer of different types of foam and bedding products as well as other household assets achieved a 51 percent increase in its nine months revenue for 2021 following an increased innovation drive.
In the year under review, Vitafoam had revenue of N35.40 billion which was a 51 percent increase from the 23.4 billion realized in the previous year, 97.5 percent of the revenue generated in 2021 came from Nigeria.
The revenue was achieved through the sale of its products worth N34.17 billion which is a 51 percent increase from the N22.61 billion it got in 2020, while its income from freight services rendered grew by 48 percent reaching N1.23 billion in 2021 from N831 million in the previous year.
Its profit before tax grew by 30 percent to N7.34 billion in 2021 from N5.64 billion in the previous year, after-tax payment of N2.74 billion, its profit for the year under review grew by 12 percent to N4.59 billion from N4.1 billion in 2020.
The firm’s cost of sales increased to N21.72 billion from N12.43 billion in 2020 which was driven by the surge in the prices of raw materials and other consumables.
Also, the firm’s total equity grew by 43 percent to N12.93 billion from N9 billion in the previous year, while its assets increased by 46.9 percent to N31.78 billion from N21.63 billion in 2020
Following the increase in profit, the firm’s proposed dividend increased by 127 percent to N2.2 billion from N979 million in 2020.
Read also: Vitafoam posts N4.4bn profit, dividend up 114%
Subsequently, Vitafoam also proposed a final dividend payment of N1.50 per 50 kobo ordinary share which will be paid to its shareholders from the 4th of March 2022 if approved.
The company as a provider of essential items like beddings emerged a winner amid the pandemic after making sale of its products was used to setup isolation centers furthermore, subsidiaries of the firm engaged in the production of washable facemask, hand sanitizer, liquid hand wash and other protective items during the heat of the pandemic.
Experts say that the company has consistently demonstrated resilience despite the challenges militating against the manufacturing sector in Nigeria.
Highlighting its business expansion activities, Vitafoam stated that it has over the years transitioned from being just a manufacturer of flexible and rigid foam products to offering complete household furniture solutions.
“In line with our innovation drive, the company invested in a Polyethylene Foam sheets and pipes making plants and has since installed and commenced production of EPE sheets and other products for automotive, furniture, agricultural and construction industries, for examples Air Condition insulation ducts, cooler bags, protective packaging, life jackets and suits, etc,” it stated.
In addition to this, Vitafoam recently acquired and installed a fibre sheet-making machine that produces fibre sheets for furniture and quilting of mattress covers and duvets.
The company also announced that its new subsidiary Vitaparts Nigeria Limited commenced operations in the fourth quarter of 2021 with all plants installed and commissioned, after much delay occasioned by the COVID-19 pandemic and other challenges
“The factory in Sierra Leone is already turning out products of high-quality standards with good margin and has begun to yield positive outcome by way of market penetration and acceptance of our products, this subsidiary has commenced export of high-quality products to Guinea as part of market expansion,” it stated.
Vitafoam was incorporated on August 4 1962 and listed on the Nigerian Stock Exchange in 1978 with six subsidiaries to its portfolio including Vitapart, Vono furniture, Vitavisco, Vitafoam Sierra Leone Ltd, Vitagreen Ltd etc.
The company announced that its annual general meeting to hold on the 3rd of March 2022 by 10am at the Radisson Blu hotel Ikeja, Lagos. At the close of the Nigerian bourse on Friday, the company’s share price stood at N22.5 per share.
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