Vitafoam Nigeria ends 2016 with N32m loss

Nigerian foam-manufacturing company, Vitafoam Nigeria Plc, on Tuesday announced that it would be paying a total of N125 million as cash dividends to shareholders despite posting a net loss of N32.03 million in 2016.

The dividend recommendation and audited report and accounts for the year ended September 30, 2016 were filed at the Nigerian Stock Exchange (NSE) on Tuesday. The gross dividend implies that shareholders will receive a dividend per share of 12 kobo.

According to the filing, the dividend will be paid on March 9, 2017 after the annual general meeting on March 2, 2017 where shareholders are expected to approve the dividend recommendation. With a net loss of N32.03 million in 2016, the dividend recommendation means that the company will be using part of its reserves to finance the dividend payment.

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Audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2016 showed a top-down decline in performance indicators. Turnover dropped from N16.85 billion in 2015 to N13.57 billion in 2016. Gross profit also declined from N5.10 billion to N4.66 billion. Operating profit dropped to N888 million in 2016 as against N1.15 billion in 2015.

Profit before tax slumped to N61.2 million in 2016 as against N213.1 million in 2015. The company recorded net loss after tax of N32.03 million in 2016 as against N71.98 million in 2015. Loss per share thus stood at 3.88 kobo in 2016 as against 3.74 kobo in 2015.

 

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