Massive demand for shares of Vitafoam Nigeria PLC, yesterday pushed up the company’s share price by N3.88 or 0.65 percent to close at N17.40 among the top ten gainers on the NGX.
Investors have consistently been on the queue for the shares of the frontline manufacturer of rigid foam and other household materials following the company’s consistent Stella performance despite the inclement operating environment.
“ Vitafoam’s share is on high demand and it’s very scarce. A scenario like this will elicit price increase. The Company has demonstrated resilience in its operations over the years. It is expected that shares of such a company will be on high demand.” said an analyst.
In 2020, it’s after taxes net profit soared by 72 per cent from N2.39 billion to N4.11 billion while the basic earnings per share increased from N1.82 to N3.05 and Net assets per share hit N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019. The company paid a cash dividend of 70 kobo per share as against 42 kobo paid in 2019.
Commenting on the last year performance, the Group Managing Director, Mr Taiwo Adeniyi had explained that Vitafoam placed premium on product improvement.
“ As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products. We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.
“We launched Buy Rights, last year, when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counseling to advise on the specific foam for individual customers. This has greatly endeared us to our customers. Vitafoam is not just about only rigid foams.
“We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam.”, Adeniyi said.