Vitafoam Nigeria Plc said its after-tax profit for the year ended 30 September 2020 grew by 72% to N4.108 billion as improved revenue and lower cost of sales boosted gains.
The mattress maker disclosed in its financial statements for the review period obtained from the website of the Nigerian Stock Exchange (NSE) on Monday that turnover climbed by 5.21% to N23.445 billion, up from the N22.283 billion reported in the corresponding period of 2019.
Profit before tax advanced from N3.496 billion to N5.647 billion, representing a 61.5% increase.
Profit after tax was up by 72.1% from N2.387 billion to N4.108 billion.
Vitafoam’s improved earnings drew strength from the diversification of operations and streams of income following the establishment of new plants across West Africa.
“Vitafoam Group’s expansion drive to Sierra Leone has begun to yield positive outcome by way of market penetration and acceptance of our products. The factory in Sierra Leone is already turning out products of high quality standards with good margin,” the company said in its financial statement.
“This subsidiary has commenced export of high-quality products to Guinea as part of market expansion whilst strengthening collaboration with the government of Sierra Leone and other humanitarian agencies towards mass production and distribution of quality mattresses in Sierra Leone.”
A cut in the cost of sales by 8.1% to N12.430 billion and finance cost by 11.4% to N930 million also helped profit.
Shareholders’ fund appreciated by 51.4%, moving from N5.970 billion to N9.040 billion.
Earnings per share for the period lifted from N1.82 to N3.05, signalling a growth of 67.6%.
Meanwhile, the board of directors of Vitafoam has recommended a dividend of N876 million translating to N0.70 per share for the period. The proposal is subject to shareholders’ approval at the next annual general meeting.
Shares in Vitafoam closed on the NSE on Friday at N7.80 per unit.
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