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Vitafoam Plc, Nigeria’s largest and oldest-surviving manufacturer of rigid foams and other household equipment Wednesday, announced plans to hold virtual Annual General Meeting (AGM).
The virtual meeting and 59th in the series, is scheduled for Thursday, March 4, this year. The Board has proposed a dividend of 70 kobo per share as against 42 kobo paid in the preceding year. This translates to a dividend yield of 8 percent at the company’s current share price on The Nigerian Stock Exchange and clearly above yields on any money and capital market instruments in Nigeria at the moment.
The notice, signed by the Company’s Secretary and Legal Adviser, Mr. Olalekan Sanni, said that the company’s first virtual general meeting would focus on the reports of the directors, and audited financial statements for the year ended September 30, 2020 alongside with the reports of the auditors and the audit committee.
The company had earlier announced its topnotch performance in the review period despite the impacts of COVID-19 pandemic on corporate earnings.
Its turnover rose by 5.2 per cent from N22.28 billion to N23.44 billion. Cost of sales dropped by 8.1 per cent from N13.52 billion to N12.43 billion. Gross profit thus rose by 25.7 per cent from N8.76 billion to N11.01 billion. Non-core business income rose by 52 per cent from N491 million to N745 million. Interest expenses reduced by 11.4 per cent from N1.05 billion to N930 million. Profit Before Tax soared by 61.5 per cent from N3.5 billion to N5.6 billion.
Responding to media enquiries on the basis for the company’s stellar performance despite the inclement operating environment, the Group Managing Director, Mr Taiwo Adeniyi attributed it to innovation and expansion drive.
“ Innovation is the drive. 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.
“ Last year, we launched Buy Rights 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. Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State government as our corporate support.
“Our investmentin the subsidiaries as a growth strategy is begin to pay off. All of them have turned profitable. We are not insulated from the tough operating environment as all the indices that should drive growth in the manufacturing sector are weak. But due to our innovative efforts, trust on the part of our customers and of course divine grace, our balance sheet today is one of the strongest in the industry. We have capacity to sustain the trajectory and we shall continue to reward our shareholders accordingly.”, says Adeniyi.
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