Shareholders of Vitafoam Nigeria Plc have approved a N1.31 billion dividend, which translates into N1.05 per share declared by the Company for the financial year ended, September 30, 2024.
The shareholders gave their approval at the Company annual general meeting held in Lagos.
The Group’s turnover hit N82.6 billion in September 2024, an increase of 56 per cent over N52 .9 billion posted in 2023. But the surge in revenue was moderated by foreign exchange loss which impacted some of the components of earnings. However, shareholders generally explained that the dividend was evidence of the Company’s policy of ensuring shareholder value.
Speaking to shareholders, the chairman of Vitafoam, Zakari Sada said that appropriate strategies had been put in place to position the company for stellar performance.
He stated that “despite the challenges in the business environment, the Group’s turnover improved from N52.9 billion in the 2023 financial year to N82.6 billion in 2024, a 56 per cent growth. The surge in revenue attests to the strength and acceptability of the Vitafoam Brand.”
He however said that the positive top-line performance was undermined by the huge foreign exchange loss posted during the year, due majorly to the impact of harmonisation of exchange rate and attendant decline in the value of the naira against other currencies, particularly the dollar.
Sada assured of a bright light at the end of the tunnel for the Company as strategies are already being implemented to mitigate the impacts of these external factors on the business going forward.
The group managing director and chief executive officer of Vitafoam, Taiwo Adeniyi explained that “our strategic focus on operational efficiency, innovative product offerings, and customer satisfaction has enabled us to navigate the challenging environment and achieve significant growth.
“We remain optimistic about the future and are confident that our strategies will continue to yield positive results.”
Meanwhile, the shareholders commended the Company for its ability to navigate the turbulence that characterised the Nigerian economy in the review period.
A shareholder, Adebayo Adeleke stated, “resolving to give dividend despite the challenges shows that the Company has the interest of its shareholders at heart. With the impressive performance of the subsidiaries, we are becoming a conglomerate. There is a need to strengthen the board structure of the subsidiaries.”
The national coordinator, Pragmatic Shareholders Association of Nigeria, Bisi Bakare explained that the Vitafoam’s outstanding performance despite the tough operating environment could be ascribed to a legacy of excellence foundation over the years.
