Shareholders of Vitafoam joyful as they receive N1.9 billion

Shareholders of Vitafoam Plc has applauded the company over its ability to pay N1.9 billion as dividend amid the volatile operating environment.

The shareholders made this known during the company’s 61st Annual General Meeting (AGM) which held in Lagos recently.

Speaking at the meeting, the President, Noble Solidarity Association (NSSA), Matthew Akinlade, stated that the board has done well over the last few years , adding that the brand has grown phenomenally under the tenure of its Chairman, Dr Bamidele Makanjuola.

“A peep at just the last 5-year performance alone is quite revealing that Vitafoam under Dr Makanjuola had grown tremendously. For instance, the revenue grew from N19.5 billion in 2018 to N46.3 billion in 2022, an increase of 137 per cent.

The company’s earnings per share (EPS) moved from 57 kobo to 338 kobo, an increase of 493 per cent. Dr Makanjuola deserves to be celebrated. As commitment to positive rate of return, Vitafoam has rewarded us (shareholders) with a dividend payout of N1.9 billion, translating into N1.52 per ordinary share of 50 kobo each for the 2022 financial year. This is highly commendable”, Akinlade said.

Addressing the shareholders, Makanjuola while commending the company’s board and management and shareholders for their support throughout his tenure, noted that the company will continue to post strong earnings and generate shareholders’ value irrespective of vagaries in the operating environment.

He also added that he will be stepping down as chairman having served out a full term in line with the company’s tenure policy for Non-Executive Directors.

He said, “Together we have moved boundaries and broken glass ceilings. While some of our plans might not have turned out exactly as envisioned, we have persevered with your support to move the company to the next level in our collective quest for greatness.

The fundamentals of our business remain strong . The growth in turnover in a volatile operating environment exemplified the unique strength and resilience of our brand. While turnover grew substantially, profitability was hobbled by raw materials price inflation at both local and international markets”.

According to him, the company had to contend with a sharp decline in Naira exchange rate relative to other major currencies, the paucity of foreign exchange, high inflation, poor purchasing power, and low disposable income of consumers, among others.

The Chairman thereafter, said that with renewed confidence, efforts will be intensified to grow the company’s business lines by expanding Vitafoam’s product offerings.

Commenting on the company’s ability to weather the storm, the Group Managing Director, Taiwo Adeniyi, attribute it to to the innovation and corporate culture of quality products and services.