Vitafoam’s half-year profit up by 129% despite slump in revenue

Vitafoam Nigeria Plc has reported a 128.9% leap in profit for the half year ended 31^st March 2020, compared to the corresponding period of 2019.

The comprehensive details of the financial performance of the foam manufacturer in the review period are contained in its Unaudited Consolidated and Separate Interim Financial Statements, posted on the Nigerian Stock Exchange (NSE) website on Thursday.

Revenue dipped by 7.56% from N12.938 billion at HY2019 to N11.960 billion.

Profit Before Taxation however grew from N1.112 billion to N2.365 billion, signalling a 112.68% rise.

Profit for the Period expanded by 128.9% from N739.255 million to N1.692 billion.

Earnings Per Share (EPS) went up 134.29 % to N1.30 from N0.56.

Total Equity rose marginally from N6.923 billion at HY2019 to N7.100 billion at HY2020, representing a 2.56% increase.

Vitafoam achieved a considerable expansion in its earnings despite a slight fall in revenue owing to major cuts in certain areas of its expenditure.

Read also: Investment in real sector declined by $7.89bn in Q1 –NIPC Report

For instance, it reduced its Cost of Sales from N9.159 billion to N6.762 billion in the period under review, representing a 26.17% cut.

Similarly, it pared its Finance Cost by 8.15% from N447.761 million to N411.276 million.

Vitafoam’s outstanding shares currently stand at around 1.251 billion with an EPS of N2.96.

Its Price-to-Earnings (PE) ratio is 1.67 while its dividend yield is 8.48%

Simply Wall Street says the stock is undervalued as it currently trades at 88% below its estimated fair value.

Vitafoam’s Return on Investment is 31.43 while its Return on Equity is 17.82 according to Reuters.

Vitafoam opened trade on the floor of the NSE today at N4.51 per share.

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