Shareholders of Vitafoam Nigeria PLC have expressed delight in the company’s Board and Management over the declaration of N1.31 billion, which translates into N1.05 per Ordinary Share for the financial year ended 30 September 2024.
At Vitafoam’s 63rd Annual General Meeting (AGM) in Lagos on Thursday, the leading manufacturer of flexible, reconstituted foams and household materials was also commended by the shareholders for its ability to navigate the turbulence that characterised the Nigerian economy in the review period.
The Group’s turnover hit N82.6 billion in September 2024, an increase of 56 per cent over N52.9 billion posted in 2023. But the surge in revenue was moderated by foreign exchange loss, which impacted some of the components of earnings. However, shareholders generally explained that the dividend was evidence of the Company’s policy of ensuring shareholder value.
Commenting on Vitafoam’s performance, a shareholder, Pastor Adebayo Adeleke, commended the Board and Management for weathering the storm of 2023/2024 to declare a dividend for shareholders.
“Resolving to give a dividend despite the challenges shows that the Company has the interests of its shareholders at heart. With the impressive performance of the subsidiaries, we are becoming a conglomerate. There is a need to strengthen the board structure of the subsidiaries,” Adeleke stated.
Corroborating him, the National Co-ordinator of the Pragmatic Shareholders Association of Nigeria, Bisi Bakare, explained that Vitafoam’s outstanding performance despite the tough operating environment could be ascribed to a legacy of excellence and foundation over the years.
“The outstanding performance under the leadership of the current Chief Executive Officer is a testament to a legacy of good foundation by every Chief Executive Officer of the company over the years. While commending the Board also, I advise that more women are brought on the Board as against the current one woman. This will promote gender-balancing and enhance corporate governance,” said Bakare.
Earlier in his address, the Chairman, Zakari Sada, informed the elated shareholders that appropriate strategies had been put in place to position the company for stellar performance, saying: “Despite the challenges in the business environment, I am pleased to inform you that your company sustained the trend of growth. The Group’s turnover improved from N52.9 billion in the 2023 financial year to N82.6 billion in 2024, a 56% growth. The surge in revenue attests to the strength and acceptability of the Vitafoam Brand. Regrettably, the positive top-line performance was undermined by the huge foreign exchange loss posted during the year, due majorly to the impact of harmonisation of exchange rate and attendant decline in the value of the Naira against other currencies, particularly the Dollar. I would like to assure you of a bright light at the end of the tunnel as strategies are already being implemented to mitigate the impacts of these external factors on our business going forward.”
The Group Managing Director and Chief Executive Officer, Taiwo Adeniyi, has always maintained that “Our strategic focus on operational efficiency, innovative product offerings, and customer satisfaction has enabled us to navigate the challenging environment and achieve significant growth. We remain optimistic about the future and are confident that our strategies will continue to yield positive results.”
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