Vitafoam Nigeria increases dividends by 127% to N2.22b

Shareholders of Vitafoam Approve Cancellation of 1.14bn Unissued Shares

Executive Director, Corporate Services, Vitafoam Nigeria PLC, Sola Owoade, Chief Medical Director, Lagos Island Maternity Hospital, Dr Omololu Olufemi, Group Head, Administration, Vitafoam, Lekan Sanni , moth er of 1st Baby of the Year, Mrs Simbiat Qudus, her husband, Laiyenbi, during presentation of corporate gifts to 1st Baby of the Year by Vitafoam at the weekend.

Vitafoam Nigeria Plc rode on the back of substantial sales growth to improve its bottom-line, enabling the board of the foam-manufacturing group to recommend 127 per cent increase in dividend payout.

The board of Vitafoam Nigeria is recommending total dividend payout of N2.224 billion for the 2021 business year as against N979.41 million paid for the 2020 business year.

According to the breakdown, shareholders on the register of the company as at the close of business on February 11, 2022 will receive a dividend per share of N1.50.

Key extracts of the audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2021 submitted at the Nigerian Exchange (NGX) showed that group turnover rose by 51.3 per cent from N23.44 billion in 2020 to N35.40 billion in 2021. Group profit before tax grew by 30 per cent to N7.34 billion in 2021 as against N5.65 billion in 2020. Group profit after tax increased by 12 per cent from N4.11 billion to N4.60 billion in 2021. With these, group earnings per share increased from N3.05 in 2020 to N3.39 in 2021.

Further analysis on a standalone basis, showed that the parent company, Vitafoam Nigeria is contributing N1. 88 billion to the dividend payout, an increase of 114 per cent above N87. 59 million paid in 2020. The company’s turnover rose by 49 per cent to N32.01 billion in 2021 as against N21.82 billion in 2020. Profit before tax jumped by 37 per cent to N6.78 billion in 2021 compared with N4.96 billion recorded in 2020. Profit after tax increased from N3.46 billion to N4.38 billion. The company’s earnings per share rose from N2.76 in 2020 to N3.51 in 2021.

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Shareholders of the company are expected to approve the financial statements and dividend recommendation at their annual general meeting (AGM), scheduled for Thursday, March 3, 2022 at Raddison Blue Hotel, Ikeja, Lagos. The dividend shall thereafter be paid electronically on Friday, March 4, 2022.

Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, attributed the company’s consistent strong performance to innovative board and management, continuous introduction of multiple products beyond foams and huge investment in research and development among others.

In a statement to the NGX, Vitafoam Nigeria noted that its business was driven by collective commitment to a culture of integrity, accountability, and transparency.

“We conduct our operations in accordance with good moral and ethical standards while obeying relevant legislations. Our goal is to remain a responsible and responsive corporate organization committed to ensuring healthy and comfortable living while contributing positively to the overall growth of the country,” Vitafoam Nigeria stated.

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Market analysts commended the performance of the company, pointing out its strong track records of impressive financials and dividend payouts.

Managing Director, Network Capital, Mr Oluropo Dada said Vitafoam NIgeria has consistently demonstrated resilience despite the challenges militating against the manufacturing sector in Nigeria.

“The company’s current performance is a great improvement over the historical one,” Dada said.

Restates commitment to healthy living

Meanwhile, Vitafoam Nigeria has assured Nigerians of continued support for healthy growth of children as foundation for purposeful adulthood.

Speaking at the award ceremony for the first three babies of the year at Lagos Mainland Maternity Hospital on Saturday, January 1, 2022, Executive Director, Corporate Services, Vitafoam Nigeria Mr. Sola Owoade explained that it had been the tradition of Vitafoam to support babies with some of its premium products.

According to him, at the core of the company’s corporate social responsibility (CSR), is the policy of giving back to the society at various levels.

Owoade said   that the company’s existence was highly dependent on the society and it therefore has a responsibility to sustain its culture of quality products, including baby materials.

In line with Vitafoam’s annual tradition of putting smiles on the faces of parents of the first three babies, the company donated an array of products, including babycot, hospital mattresses, memory topper, complete duvet set, leisure mat, sofa bed and memory and fibre pillows respectively.

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“As a good corporate citizen, Vitafoam Nigeria,  instituted an annual award for the first three babies of the year at Lagos Island Maternity Hospital over many decades. This is consistent with our corporate social responsibility (csr). Our company is truly Nigerian-owned and all the baby products given out today are made by Vitafoam. This also reflects our multiple products. We are not just about rigid foams only but other household materials, including furniture.

“Vitafoam’s goal is to continually put smiles on the faces of every Nigerian. We always celebrate the first three babies of the year with our products. We congratulate the parents of this year’s beneficiaries. We believe that good facilities are necessary in our hospitals for enhanced child delivery. We appreciate the government’s efforts in this regard but corporate organizations also have a responsibility to support the government,” Owoade stated.

The first baby of the year was delivered at exactly 12.10 am, second, 12.50 am and the third, 1.30 am. Chief Medical Director, Lagos Island Maternity Hospital, Dr Omololu Olufemi commended Vitafoam’s continuous corporate gesture. Olufemi noted that the annual gifts were spread across the first babies of the year. “We have always enjoyed the partnership with Vitafoam over the years,” Olufemi said.

Father of the first baby of the year, Mr Laiyenbi Qudus expressed gratitude to the management of Vitafoam for the gift, describing it as a great beginning of the year for the new baby.


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