CAPITAL MARKET

Vitafoam grows revenue by 14%, proposes N1.9bn dividend

Vitafoam Nigeria PLC, a frontline manufacturer of rigid foams and furniture accessories, grew its revenue to N52.9 billon in 2023, from N46.3 billion in 2022, an increase of 14 percent despite the headwinds that characterised the operating environment.

In line with the Company’s policy of shareholder value, its board has proposed  a dividend of N1.9 billion, which translates to N1.56 kobo per ordinary  share of 50 kobo each for the shareholders’ approval at the Annual General Meeting (AGM), scheduled for March 7, 2024 in Lagos.

The company’s total assets in the review period also rose to N49.6 billion from N39.4 billion in 2022.

Market watchers commended the company’s performance against the backdrop of the tough operating environment.

“When it is weighed against the headwinds militating against the operations of manufacturers in Nigeria, Vitafoam’s performance shows corporate resilience. Manufacturers in Nigeria contend with a sharp decline in the Naira exchange rate relative to other major currencies, paucity of foreign exchange to import some raw materials, high cost of energy, weak purchasing power and low disposable income of consumers, rising inflation and devaluation of the Naira, among others, have always made the operating environment tough,” said an observer.

The Group Managing Director, Mr Taiwo Adeniyi has always emphasized that Vitafoam placed premium on Research and Development. According to him, the topnotch products of the company are designed to address specific needs of its diverse customers.

As a good corporate citizen, Vitafoam invests heavily in the education and healthcare  sectors to give back to the society through  its strong corporate social responsibility (CSR) policy.

READ ALSO FROM NIGERIAN TRIBUNE 

Kehinde Akinseinde-Jayeoba

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