Vitafoam declares N1.31bn dividend for shareholders
Vitafoam Nigeria Plc, a leading manufacturer of flexible and reconstituted foams, has announced a dividend payment of ¦ 1.31 billion to its shareholders.
This equates to ¦ 1.05 per ordinary share for the financial year ending 30th September 2024.
The Group Managing Director of Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, disclosed this on Friday in Lagos through a communiqué issued at the conclusion of the company’s Annual General Meeting (AGM).
Adeniyi attributed the company’s success to its strategic focus on operational efficiency, innovative product development, and customer satisfaction, which enabled it to navigate a challenging economic landscape and achieve significant growth.
He expressed confidence in the company’s future, stating that Vitafoam’s strategic initiatives would continue to drive positive results.
“The Group’s turnover reached ¦ 82.6 billion in September 2024, marking a 56 per cent increase compared to the ¦ 52.9 billion recorded in 2023.
“However, this revenue growth was impacted by foreign exchange losses, which affected certain components of our earnings,” Adeniyi explained.
The Chairman of Vitafoam Nigeria Plc, Mr Zakari Sada, reassured shareholders that appropriate strategies were being implemented to ensure continued strong performance.
Despite economic challenges, he noted that the company maintained a consistent growth trajectory.
“The Group’s turnover rose from ¦ 52.9 billion in the 2023 financial year to ¦ 82.6 billion in 2024, reflecting a 56 per cent increase.
“This surge in revenue underscores the strength and market acceptance of the Vitafoam brand.
“However, the positive top-line performance was dampened by significant foreign exchange losses, largely due to the harmonisation of exchange rates.
“There is, nevertheless, light at the end of the tunnel, as we are actively implementing strategies to mitigate the impact of these external factors on our business moving forward,” he assured.
Shareholders expressed their appreciation for the company’s commitment to rewarding investors despite economic uncertainties.
Pastor Adebayo Adeleke, a shareholder, commended Vitafoam’s board and management for overcoming the challenges of 2023/2024 to declare a dividend.
“The decision to pay dividends in such a difficult business environment shows that the company truly values its shareholders.
“With the impressive performance of its subsidiaries, Vitafoam is evolving into a conglomerate. There is a need to strengthen the board structures of these subsidiaries,” Adeleke stated.
Bisi Bakare, the National Coordinator of the Pragmatic Shareholders Association of Nigeria, attributed Vitafoam’s resilience to its long-standing legacy of excellence.
She also called for increased female representation on the company’s board to promote gender balance and enhance corporate governance.