Shareholders of Vitafoam Plc have approved the dividend of N1.9 billion
recommended by the company’s board of directors for the 2022 financial
year.
The shareholders gave the approval at the company’s 61st Annual
General Meeting held in Lagos.
According to the company, the dividend pay–out of N1.9 billion
translates to N1.52 per ordinary share of 50 kobo each for the 2022
financial year.
Ten years service: Addressing shareholders at the AGM, the Chairman,
Vitafoam Nigeria Plc, Dr Bamidele Makanjuola who announced his
retirement to the shareholders after service of ten years, a full term in line
with the Company’s tenure policy noted that with the company’s team of
innovative management and staff, it shall continue to post strong
earnings and generate shareholder value irrespective of vagaries in the
operating environment.
Challenges of business: He noted that the fundamentals of the
company’s business remain strong adding that the growth in turnover in a
volatile operating environment exemplified the unique strength and
resilience of the brand.
“While turnover grew substantially, profitability was hobbled by raw
materials price inflation at both local and international markets. In
addition, we had to contend with a sharp decline in the 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. With renewed
confidence, efforts will be intensified to grow our business lines by
expanding Vitafoam’s product offerings,” Makanjuola said.
He noted that the declaration of the dividend is evidence of the
Company’s stellar performance despite the tough operating climate.
Innovation: Commenting on the Company’s ability to weather the storm,
the Group Managing Director, Mr Taiwo Adeniyi, attributed the
performance to the innovation and corporate culture of quality products
and services.
“You may see two products looking so much alike in the market but
they do not cost the same price. Intrinsic values in our products
stand us out. We have created a niche market for ourselves. We
don’t play in every market. We don’t run at the same pace as others.
We invest heavily in Research and Development and we customize
our products to address the needs of our diverse customers,
including consideration for age and gender. This is what is standing
us out in the marketplace. We produce well and price well,” Adeniyi
said.
What shareholders said: The President, of Noble Shareholders
Solidarity Association (NSSA), Mr Mathew Akinlade, explained that
everything about Makanjuola and Vitafoam should be applauded.
“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%. The Earnings Per Share moved
from 57 kobo to 338 kobo, an increase of 493%. The man deserves
to be celebrated,” Akinlade said.
Source: Nairametrics
