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Vitafoam’s full year profit soars by 297% as firm declares N525m dividend

Vitafoam’s full year profit soars by 297% as firm declares N525m dividendVitafoam’s full year profit soars by 297% as firm declares N525m dividend

Vitafoam Nigeria Plc has posted a massive 296.5% rise in its profit for Full Year 2019. Specifically, the foam products manufacturer posted a profit of N2.387 billion for FY2019, a N1.785 billion increase over the N601.923 recorded by the firm at FY2018.

These and other details of the company’s financials are contained in Vitafoam Nigeria Plc Consolidated and Separate Financial Statements for the Year Ended 30 September, 2019, posted on the Nigerian Stock Exchange (NSE) on Tuesday.

For this reason, the Board of Directors of the firm, in a separate statement to the Exchange, has declared a dividend pay-out of N525 million translating to 42k per share for the financial year ended 30th September 2019. This is however subject to shareholders approval at the next Annual General Meeting (AGM), scheduled to hold on 5th March 2020.

All the Key Performance Indicators (KPIs) of the company in the period under review recorded overwhelming improvement relative to the corresponding period of 2018.

Revenue witnessed moderate growth, leaping by 14.1% from N19.534 billion at FY2018 to FY2019.

Profit Before Tax (PBT) surged by 340%, rising to N3.496 billion at 30th September 2019 from the N793.852 million recorded in the corresponding period of 2018.

The commendable result derived not so much from Vitafoam’s improved revenue as from significant cuts in expenditure incurred in its corporate processes as well as increase in returns from various sources of revenue.

Read also: PZ declares N1.6bn loss amidst escalating administrative expenses

For instance, Cost of Sales went down from N13.678 billion at FY2018 to N13.520 billion at FY2019. It is worthy of note that Vitafoam was able to achieve lower cost of doing business at HY2019 despite doing more business than the year before.

The firm was able to slash its Finance Costs considerably from N1.377 billion at FY2018 to N1.050 billion, a 31% cut as a matter of fact.

Similarly, the company’s experienced improvement in its Finance Income from N79.186 million at FY2018 to N101.060 million at FY2019. Its Other Gains and Losses swelled from N380.524 million at FY2018 to N389.831 million at FY2019.

Earnings Per Share (EPS) climbed from N0.57 at FY2018 to N1.82 at FY2019, indicating a 219% growth.

Earnings Per Share is the profit that each unit of a company’s ordinary shares yields during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares. Increase in a company’s EPS often reflects improvement in its bottom-line while a fall, on the other hand indicates a declining profit.

Vitafoam currently trades on the floor of the NSE at N4 per share.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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