Vitafoam Nigeria Plc shareholders have approved the proposed N979.41 million dividend for the financial year ended Sept. 30, 2020.
The shareholders, at the company’s hybrid Annual General Meeting (AGM), held on Thursday in Lagos, specifically commended the management for the outstanding performance.
The N979.4 million dividend translated into 70k per a share in contrast with 42k paid in 2019 financial year, representing an increase of 64 per cent.
The firm announced a 5.2 percent increase in total sales, 8.1 per cent drop in cost of sales, while the 11.4 per cent reduction in finance was a reward for internal cost efficiency.
The company’s after taxe net profit soared by 72 per cent from N2.39 billion to N4.11 billion; basic earnings per share increased from N3.05 to N1.82 and net assets per share stood at N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.
Speaking at the meeting, Alhaja Ayodele Kudaisi, a member of the Independent Shareholders Association of Nigeria, commended Vitafoam’s declaration of 70k dividend per share.
“The company’s dividend has been on upward trend in the last three years.
“The company’s board and management have demonstrated capacity to compete globally, in spite of the challenges in the operating environment,” Kudaisi said.
Nona Awoh, another shareholder, while commending the firm, urged the board and management to consider the need to commence interim dividend to further boost the shareholders’ Return On Equity.
Dr Bamidele Makanjuola, the Chairman of the company, explained that the company’s performance was driven by topnotch human capital who have demonstrated innovative tendencies and global competitiveness in all metrics.
“The company is blessed with young and vibrant staff. We will drive innovative strategies to sustain growth and profitability despite immense environmental challenges.
“We remain upbeat about the quality of our product range and will continue to invest in capacity- building and products development as pathways to sustaining market leadership.
“I am confident that the uniqueness of our offerings, incredible brands, and the Ccmpany’s cost optimisation approach will further strengthen our overall business performance, with resultant improvement in returns to all our shareholders,“ Makanjuola said.
Mr Taiwo Adeniyi, the Group Managing Director, had earlier noted that the company placed premium on product improvement.
“As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products.
“We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.
“ We launched buy rights, last year, when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counselling to advise on the specific foam for individual customers.
“This has greatly endeared us to our customers. Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam.
“Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State government as our corporate support,” Adeniyi said.