Vitafoam Nigeria announces N260.51m dividend, bonus shares

Vitafoam Nigeria Plc has announced that it has recommended payment of N260.51 million dividend and distribution of bonus shares to shareholders for the financial year ended September 30, 2018. The Company Secretary/Legal Adviser, Mr. Lekan Sanni, disclsed this in a statement that the cash dividend, representing a dividend per share of 25 kobo is subject to shareholders’ approval and withholding tax. Besides, shareholders will receive bonus share of one new ordinary share of 50 kobo each for every five ordinary shares of 50 kobo each held as at the close of business on the qualification date. Specifically, the new shares shall rank equally in all respects with the existing ordinary shares except that they shall not rank for the dividend recommended for the year ended 30th September, 2018. Vitafoam Nigeria’s share price closed at N4.50 on the floor of the NSE during the last day of trading. The foam-manufacturing company audited report and accounts for the year ended September 30, 2018 recorded an impressive growth in sales and profitability. The company’s revenue rose to N19.53 billion in 2018 from N17.69 billion in 2017, an increase of 10.7 per cent. Profit before tax leaped from N18.13 million in 2017 to N793.85 million in 2018. The company made a profit after tax of N601.92 million compared to a loss after tax of N127.69 million recorded in the comparative period of 2017. Earnings per share thus improved from a loss of 15 kobo in 2017 to a gain of 57 kobo in 2018. Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible, reconstituted and rigid foam products, which has the largest foam manufacturing and distribution network and 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, and remain household names in the Country. The Company’s commitment to quality in its production process has earned it several quality awards including the Gold Certificate Award for most of its products. Vitafoam was the first Foam Manufacturing Company in Nigeria to subject its quality system to the Quality Management System championed by the Standards Organization of Nigeria (SON). The Company’s policy is determined by a competent and dynamic Board, a mix of executive and non-executive directors who are experts in their own fields. The Company is consolidating its core business by the introduction of innovative value-added products and services and has carved a niche for itself in the industry by its offer of a vast array of high and superior quality products that present the customers with multiple unique choices. Temitope Adebayo