Vitafoam Nigeria PLC has proposed a dividend of N1.375 billion for approval by shareholders at its 63rd Annual General Meeting, set to take place on March 6, 2025.
The proposed dividend of N1.05 per share highlights the company’s commitment to rewarding its shareholders despite facing challenges in the forex market.
In a statement released to the Nigerian Exchange Limited, the company reported a 76.5 per cent increase in gross profit, which rose to N30bn in 2024, up from N17bn in 2023.
This company’s profit before tax was impacted by a foreign exchange loss of N12.7bn during the period under review.
The company’s net asset also witnessed growth, climbing to N25bn in 2024, a 47 per cent increase from N17bn in 2023.
However, despite the gross profit and net asset growth, the company’s PBT declined to N1.15bn, down N6bn from N6bn in the previous year. This decline was primarily due to a finance cost of N7.1bn, which affected the overall profitability.
In the normal course of business, the Group uses letters of credit to import materials.
The total value of open letters of credit as of September 30, 2024, was N4.51bn, up from N22.48bn in 2023.
Commenting on the result, the Group Managing Director, Taiwo Adeniyi, acknowledged the challenges posed by the foreign exchange loss but assured stakeholders that the worst was over, citing the Federal Government’s liberalisation policy.
He also expressed optimism for the future, stating that Vitafoam’s diversified product portfolio and strategic investments would drive future growth and enhance the company’s competitiveness in the market.
“Despite the challenges with forex, we are committed to rewarding our shareholders with a dividend,” said Adeniyi, emphasising the company’s resilience and dedication to delivering value to its investors.
Adeniyi noted that Vitafoam, with its six subsidiaries, remains a player in the Nigerian market and continues to expand its reach across the country and beyond, with operations in Sierra Leone, Nigeria, and other locations.
The PUNCH reported that Vitafoam Nigeria Plc increased revenue by 56 per cent to N82.58bn in the third quarter of 2024 from N52.99bn in the prior period of last year.
