Shareholders laud Vitafoam’s expansion exercise

Vitafoam Nigeria Plc. Image source vitafoamng

Vitafoam Nigeria Plc. Image source vitafoamng

Shareholders of Vitafoam Nigeria Plc, yesterday commended the management for the on-going expansion into the West African sub-region, aimed at enhancing profitability, while urging them to work on the subsidiaries in order to sustain its growth profile.

The shareholders’ who spoke during the company’s yearly general meeting held in Lagos yesterday, also lauded the company for the bonus of one for five, as well as sustaining its dividend payout of N245.7 million, translating to 30kobo dividend for the 2014 financial year, amid harsh economic environment.

Specifically, General Secretary of the Independent Shareholders Association of Nigeria (ISAN), Adebayo Adetunji Adeleke expressed satisfaction on the improved performance achieved during the year under review.

He, however, urged the management to monitor the operations of its subsidiaries to ensure that they contribute to the overall performance of the company.

“The bottom line and the balance sheet improved and they sustained their 30kobo dividend with a bonus of one for five. But they should work on their subsidiaries because they are dragging them down. They should ensure that they bring them to profitability.” He said.

The President, Standard Shareholders Association of Nigeria, Godwin Anono also lauded the management for the efficient running of the affairs and the dividend payout, urging them to introduce more products to consolidate on their performance.
Reviewing its performance, the Acting Managing Director of the company, Taiwo Adeniyi explained that turnover was slightly down by 0.6 per cent to N16.7 billion, while profit after tax up by 11.8 per cent to N435 million.
“Earning per share appreciated by 47 per cent to 75 kobo, while the company proposed a dividend payout of N245.7 million, amounting to 30 kobo per share in addition to a bonus issue of one new share for five existing shares.

Adeniyi, who assured shareholders that the company will continue to create innovative products to strengthen and sustain market growth, also pledged its commitment to grow its turnover and Profit Before Tax (PBT) by 20 per cent on an annual basis.

He said the company plans to achieve this by growing its  frontier through offering unique polyurethane products,  increase the trajectory in the areas of regional and sub regional coverage, as well as protecting its core business.
This, according to him, would enable the company to make up with production losses incurred due to persistent terrorism activities in the Northern region.

He added that the company will revitalize route to market, achieve 60 per cent focus on retail touch points and also to centralize group shared services for operational efficiencies.
On measures to improve profit outlook in the new fiscal year, Adeniyi explained that efforts would be geared towards building advantage brands and expanding route to the market in term of structure sale team and factory upgrade and build technical competencies across the core business.

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