Vitafoam Nigeria reports a 72% increase in profit to N4.11 billion in 2020

Vitafoam Nigeria Plc released its 2020 Audited results for the period ended September 30th, 2020. The company recorded reported N4.11 billion profit in 2020 as against N2.39billion reported in 2019. Also, profit before tax also grew by 62 per cent to N5.65billion in 2020 from N3.5billion reported in 2019.

Key financial metrics

• Revenue grew by 5% to N23bn from N22bn in the previous quarter.

• Profit before tax grew by 62% to N5.6bn.

• Profit after tax grew by 72% to N4.1bn.

• Net Assets grew by 51% from N6bn to N9bn.

Meanwhile, the company has proposed a dividend of N979.410 million for the year, a 64% improvement over N595.434 million declared in 2019.

The company reported a 57 per cent increase in total assets to N21.6billion in 2020 as against N13.8billion reported in 2019.

The Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi had said that the consistent growth in performance is an indication  that the company will be able to surpass its previous performance in the current business year

Adeniyi stated that Vitafoam  Group in Nigeria is on a stronger footing while three of its seven subsidiaries have started to generate profit.

He assured the company‘s willingness to improve, innovate and develop products that will keep it competitive in the market and enable it to grow its turnover while extracting better values for shareholders.

Also, the Chairman of Vitafoam Nigeria Plc, Dr Bamidele Makanjuola had said the growth in turnover and profitability reflected the robustness and fundamental strength of the group’s business.

“These efforts underscore our long-term priorities of growing revenue, controlling operating costs, and driving higher gross margins. I am pleased to report that we made great strides in cost containment and sustained positive trends in gross margins.”

He assured the company‘s decision and determination to focus on products quality, innovation, market differentiation, customer service and consumer education.

Vitafoam is Nigeria’s leading manufacturer of flexible, reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just in time delivery of finished products throughout West African Sub-region. Incorporated on 4th August 1962 and listed on the floor of the Nigerian Stock Exchange in 1978, Vitafoam’s brands remain household names in the Country.

The Accounting year of Vitafoam ends in September as against what is obtainable for the majority of listed companies on NSE whose year-end is in December. At that Vita Foam Plc’s third-quarter ends in June.