Vitafoam secures N2bn BOI loan, nets N190m profit

As a strategic move to boost its working capital and sustain competitive edge, a foremost manufacturer of foams and allied products, Vitafoam Nigeria Plc which posted N190 million net profit has secured a four-year two billion naira soft loan from the Bank of Industry (BOI) at concessionary interest rate.

The BOI’s 12 per cent annual interest capital support facility, compared with the 25 per cent commercial bank rate as at last year, was expected to reduce Vitafoam’s finance cost and enhance the company’s ability to directly import its raw materials off-shore.

Addressing  financial correspondents on the company’s recent financial performance on Friday, the Group Managing Director, Mr Taiwo Adeniyi explained that Vitafoam, the only quoted company in the group, earned a profit after tax of N190 million last year, as against N412 million in the preceding year, despite the tough operating climate.

According to him, the group’s and company’s revenue also grew by 30 per cent and 31 per cent respectively compared to prior year.

“The good news is that Vitafoam has secured two billion naira structured working capital support facility with Bank of Industries (BOI) at 12 per cent per annum interest rate. When compared to commercial banks 24.5 per cent average interest rate borne in 2017. There will be a huge favourable reduction in finance cost by a minimum of N240 million, representing 20.4 per cent. Secondly, the previously depleted working capital will be boosted by the BOI’s four-year working capital support.”