FY 2022: Vitafoam reports 2% decline in pre-tax profit to N7.214bn

By Philemon Adedeji

The Nigeria’s largest foam manufacturers, producing both flexible and rigid polyurethane products, Vitafoam Nigeria plc has reported its audited financial results for the period ended December 29, 2022, reporting Profit Before Tax (PBT) of N7.214 billion in Full year 2022, reflecting a decrease of two per cent from N7.341 billion achieved in Full year 2021.

The drop in pre-tax profits was due to the increase in the cost of sales and administrative expenses following inflationary pressure and depreciation of the Naira.

From the released statement on the Nigerian Exchange Limited, Net Profit After Tax reported dropped by two per cent to N4.522 billion in 12 months of 2022 from N4.597 billion in 12 months of 2021.

According to the financial statement of the company, the cost of sales grew by 42.28 per cent to N30.912 billion in 2022 from N21.726 billion reported in 2021, consuming about 66.75 per cent of N46.310 billion revenue of the group during the period under review.

From the profit and loss figures, Vitafoam Nigerian Plc revenue moved from N46.310 billion in 12 months of 2022 from N35.404 billion in 12 months of 2021, representing an increase of 31 per cent.

The interplay between revenue and cost of sales caused Gross profit to gained 2.57 per cent to N15.397 billion in 2022 from N13.677 billion in 2021.

However, the operating profit  recorded for the period declined by 12.83 per cent to N6.920 billion in full year 2022 from N7.939 billion achieved in full year 2021.