Vitafoam Nigeria PLC has announced a proposed dividend of N1.05 per share, totaling N1.375 billion. The dividend awaits approval at the company’s 63rd Annual General Meeting, scheduled for March 6, 2025, in Lagos. This move highlights Vitafoam’s commitment to rewarding its shareholders despite a challenging year.
The company reported strong financial growth for the year ending September 30, 2024. Its Net Asset increased by 47%, rising from N17 billion in 2023 to N25 billion in 2024. Gross Profit also surged by 76.5%, climbing from N17 billion to N30 billion within the same period. These figures reflect Vitafoam’s operational strength and ability to navigate tough market conditions.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose slightly to N8.3 billion, up from N7.9 billion in 2023. However, a significant foreign exchange loss of N12.7 billion during the review period impacted profitability. As a result, Profit Before Tax (PBT) dropped sharply from N6 billion in 2023 to N1.145 billion in 2024. Despite this, Operating Profit increased from N6.9 billion to N7.6 billion, showing resilience in its core operations.
Group Managing Director Taiwo Adeniyi acknowledged the impact of forex costs but expressed optimism. “Our impressive performance was moderated by the cost incurred on forex. But the worst is over on the challenges of forex with the liberalization policy of the federal government,” he said.
Adeniyi highlighted the company’s decision to maintain its dividend payout as a commitment to its shareholders. “As a good corporate citizen, we decided to reward our shareholders with a dividend of N1.05 per share despite the loss incurred in forex,” he added. He also pointed to the company’s diversified product portfolio and investments in research as key to driving future growth and competitiveness.
Vitafoam’s performance underscores its resilience and adaptability in a volatile economy. The proposed dividend signals confidence in its long-term strategy and commitment to delivering value. Shareholders will gather at the AGM to discuss the company’s growth plans and its ability to navigate challenges in the evolving economic landscape.
