Vitafoam Nigeria Plc has ascribed its turnover increase of 5.2 per cent from N22.28bn in 2019 to N23.44bn in 2020 to innovation and expansion.
According to a statement issued on Friday by the group, the company had announced a 5.2 per cent increase in total sales, 8.1 per cent drop in cost of sales, while the 11.4 per cent reduction in finance was a reward for internal cost efficiency.
The Group Managing Director and Chief Executive Officer, Taiwo Adeniyi, said investment in the firm’s subsidiaries as a growth strategy was beginning to pay off as they had all turned profitable.
He noted that though they were not insulated from the tough operating environment, their balance sheet today was one of the strongest in the industry due to innovative efforts, customers’ trust and divine grace.
Adeniyi said, “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.
“Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment. 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.”
The company’s turnover rose by 5.2 per cent to N23.44bn. Cost of sales dropped by 8.1 per cent from N13.52bn to N12.43bn and gross profit thus rose by 25.7 per cent from N8.76bn to N11.01bn.
Non-core business income rose by 52 per cent from N491m to N745m. Interest expenses reduced by 11.4 per cent from N1.05bn to N930m, while Profit Before Tax rose by 61.5 per cent from N3.5bn to N5.6bn.
On the strength of the company’s performance, the board recommended a cash dividend of N979.4m for 2020, 64.5 per cent above N595.4m paid in 2019.
The current dividend translates into 70 kobo per share as against 42 kobo paid in the preceding year.