Vitafoam Nigeria, a leading manufacturer of rigid foams and other household materials, has rewarded its shareholders with N1.9 billion dividend for the year ended Dec. 31, 2021 at N1.50 per share.
Its Chairman, Dr Bamidele Makanjuola, made the disclosure at the company’s hybrid 60th Annual General Meeting (AGM) on Thursday.
Makanjuola said the development followed the company’s stellar performance in spite of the inclement operating environment.
He explained that the company achieved strong performance through its adoption of flexible financing strategy and excellent customer service.
The chairman added that the performance was driven by improved operational efficiency, excellent customer service, a business friendly funding window and steadfast implementation of its strategic initiatives.
“During the financial year, the company facilitated programmes that enhanced the quality and aesthetics of our products, enlarged the customer base, boosted technology investments to spur retail sales, and strengthened our distribution channels.
“The success achieved was due to the implementation of a flexible financing strategy aided by the Bank of Industry loan, as well as cost maximisation through internal efficiency gains.
“Through the deployment of fresh initiatives to expand our business frontiers, we shall remain innovative and customer-focused while vigorously driving internal efficiencies in all our operations.
“By so doing, we aim to drive up shareholder value in the interest of all stakeholders,”. Makanjuola said.
Vitafoam Group Managing Director, Mr Taiwo Adeniyi, attributed the company’s consistent performance to its policy of putting its diverse customers at the centre of research and development.
He added that beyond foams, Vitafoam produced a range of building materials under its subsidiaries- Vitapur, Vitablom, Vitavisco, Vono, Vitaparts and Vitafoam SierraLeone.
Adeniyi said the group’s turnover grew from N23.4 billion in the 2020 financial year to N35.4 billion in 2021.
He added that its turnover improved as profit before tax grew from N5.64 billion to N7.34 billion while profit after tax also increased from N4.1 billion to N4.5 billion.
“ Notwithstanding the challenging business environment, it is gratifying to inform you that your company posted a brilliant performance in the year under review.
“Meanwhile, the turnover of our parent company, Vitafoam, increased from N21.5 billion in the 2020 financial year to N32 billion in 2021.
“Profit before tax rose from N4.9 billion in 2020 to N6.7 billion in 2021 while profit after tax grew N3.4 billion to N4.3 billion.”, he said.
Leader of Independent Shareholders Association, Mr Adebayo Adeleke, said the company had a bright future as all its subsidiaries had become profitable.
Corroborating him, the President, Noble Shareholders Solidarity Association, Mr Mathew Akindele stated that the company’s policy of attracting people of value to its board could be responsible for its exceptional performance.