By Chinwendu Obienyi and Chukwuma Umeorah
Shareholders of Vitafoam Nigeria Plc, have approved the company’s initial declared dividend of N1.95 billion and commended the company’s board and management for sustaining positive rate of return despite the harsh operating environment, which affects profit margin of many blue chip manufacturing companies in Nigeria.
The leading manufacturer of mattresses, pillows, bedding and furniture had at its 62nd Annual General Meeting (AGM) in Lagos recently, declared a dividend of N1.95 billion, which translates into N1.56 kobo per Ordinary Share of 50 kobo each.
Vitafoam posted a revenue of N52.986 billion in September 2023, an increase of 14 per cent compared to N46.310 billion in the preceding year and the highest in the last five years.
In approving the dividend, shareholders showered encomium on the company’s board and management for the stellar performance in the period of economic downturn. Speaking during the meeting, the President, Noble Shareholders Solidarity Association (NSSA), Matthew Akinlade, said that the company’s performance was a resilient one amid the macroeconomic challenges.
In Nigeria today, inflation is on the rise while manufacturers are facing a hard time sourcing forex to buy raw materials. Many companies have gone under. It is therefore commendable to see that Vitafoam is able to grow profit and pay a dividend, which is even a bit higher than the previous one. We must commend the efforts of the board and management team. This year’s performance shows that the future is bright.
Corroborating him, the former National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Dr Anthony Omojola, commended the company for sustaining a positive rate of return at a period when many companies are struggling to remain in business in Nigeria.
In her address, Vitafoam’s Chairman, Professor Rosemary Egonmowan, who announced her retirement from the board, whilst reviewing the tough operating environment, expressed delight that the company was able to achieve an outstanding performance.
She assured the shareholders that Vitafoam would continue to innovate for enhanced competitive edge.
Egonmowan said, “The company will intensify innovation and invest significantly in the brand while maintaining solid relationship with the trade partners and other stakeholders towards ensuring sustainable profitability of business.”
Group Managing Director and Chief Executive Officer, Taiwo Adeniyi, noted that last year’s leadership growth was a testament of the company being resilient amid the harsh operating environment.
Adeniyi said, “The growth in turnover during the year underscores the resilience of the brand and further reinforces our industry leadership. We shall improve efficiency at all the touch points, particularly procurement, production and human capital management while strengthening collaboration with our trade partners towards expanding market share.”
At the meeting, the shareholders unanimously confirmed the appointments of Mr Olaoluwa Ogunfeyitimi and Mr Dahiru Gambo as Executive Directors while Mr Ademola Bolarinde was confirmed as a Non-Executive Director.