Menu

Vitafoam

Vitafoam 1

Vitafoam expands, unveils comfort centre in Lagos community

Vitafoam Nigeria, the leading foam manufacturer, has unveiled a new Comfort Centre in Aboru, Alimosho Local Government Area, Lagos State.

Comfort Centre is a strategic presence of Vitafoam in any location which provides an easy access to the company’s products all time.

Mr Taiwo Adeniyi, the Company’s Group Managing Director, during the unveiling ceremony on Wednesday, said the development would bring the company’s products closer to the local community.

Adeniyi said the comfort centre showcases Vitafoam’s commitment to providing customers with a comprehensive shopping experience.

He said that in addition to mattresses, the centre featured a diverse range of furniture items, including bedsheets, pillows, and dining table sets, all manufactured by Vitafoam’s subsidiaries—Vitabloom and Vono.

“Our aim is to offer customers the opportunity to explore an entire home setup in one place.

“By displaying a wide array of products, we enhance convenience and enable customers to visualise how our offerings fit into their living spaces,” he said.

Adeniyi expressed optimism regarding the company’s future expansion plans, noting that growth would be driven by demand and the support of a favourable business environment under the new administration.

“We anticipate a conducive business climate, and we urge the government to provide us with the necessary support and access to production to enable us deliver exceptional products and services.

“Vitafoam’s Comfort Centres are not limited to Aboru as they are spread across various locations in Lagos, including Ikoyi, Surulere, Lekki, and Alimosho, as well as nationwide,” he said.

Mr Olusheye Awobiyi, Operator, Aboru Comfort Centre, said the new facility would positively impact the local community, while raising awareness about the brand.

“With the convenience of a nearby location, customers can now easily access Vitafoam’s offerings without having to travel long distances.

“This, in turn, will contribute to the economic growth of the area,” he said.

Commenting on Vitafoam’s expansion efforts, Mr Taiwo Awobiyi, Chairman of Atrisland Group of Companies, applauded the company’s innovative approach and its commitment to establishing partnerships with communities nationwide.

Vitafoam 1

Vitafoam declares N1.9bn dividend

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.

Vitafoam 1

Vitafoam subsidiary produces oil filter for automobiles

A subsidiary of Vitafoam Nigeria Plc, Vitaparts Nigeria Limited, on Wednesday said it was set to revolutionise the automobile industry with the manufacture of oil filters for automobiles.

The Company’s Operations Manager, Eghosa Osadolor, in a statement to newsmen, said the innovation puts the company as the first to produce oil filters for automobiles in Nigeria.

He said that the parent company; Vitafoam, had over the years carved a niche for itself and transitioned from being a manufacturer of flexible, reconstituted and rigid foam products to offering complete household furniture solutions.

Osadolor said that the vision which birthed vitaparts stemmed from the need to offer tested and trusted oil filters and other automobile parts that would serve Nigerians and their automobiles.

“In demonstrating that innovative and forward-thinking attributes, the company has recently added to her numerous value-adding products in the automobile industry; the production of oil filters for automobiles.

“The product provides the best performance for automobile engines, it is optimized for both synthetic and conventional engine oils and has a minimum oil change interval of 10,000km,” he said.

Osadolor said the filters had been confirmed to meet international standards.

Vitafoam 1

Vitafoam declares N979.41m dividend

0

Moses Uwagbale

Vitafoam Nigeria’s shareholders have approved the proposed N979.41 million dividend for the financial year ended Sept. 30, 2020.

The shareholders, at the company’s hybrid Annual General Meeting (AGM), held on Thursday in Lagos, specifically commended the management for the outstanding performance.

The N979.4 million dividend translated into 70k per a share in contrast with 42k paid in 2019 financial year, representing an increase of 64 per cent.

The firm announced a 5.2 percent increase in total sales, 8.1 per cent drop in cost of sales, while the 11.4 per cent reduction in finance was a reward for internal cost efficiency.

The company’s after taxe net profit soared by 72 per cent from N2.39 billion to N4.11 billion; basic earnings per share increased from N3.05 to N1.82 and net assets per share stood at N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.

Speaking at the meeting, Alhaja Ayodele Kudaisi, a member of the Independent Shareholders Association of Nigeria, commended Vitafoam’s declaration of 70k dividend per share.

“The company’s dividend has been on upward trend in the last three years.

“The company’s board and management have demonstrated capacity to compete globally, in spite of the challenges in the operating environment,” Kudaisi said.

Nona Awoh, another shareholder, while commending the firm, urged the board and management to consider the need to commence interim dividend to further boost the shareholders’ Return On Equity.

Dr Bamidele Makanjuola, the Chairman of the company, explained that the company’s performance was driven by topnotch human capital who have demonstrated innovative tendencies and global competitiveness in all metrics.

“The company is blessed with young and vibrant staff. We will drive innovative strategies to sustain growth and profitability despite immense environmental challenges.

“We remain upbeat about the quality of our product range and will continue to invest in capacity- building and products development as pathways to sustaining market leadership.

“I am confident that the uniqueness of our offerings, incredible brands, and the Ccmpany’s cost optimisation approach will further strengthen our overall business performance, with resultant improvement in returns to all our shareholders,“ Makanjuola said.

Mr Taiwo Adeniyi, the Group Managing Director, had earlier noted that the company placed premium on product improvement.

“As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products.

“We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.

“ We launched buy rights, last year, when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counselling to advise on the specific foam for individual customers.

“This has greatly endeared us to our customers. Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam.

“Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State government as our corporate support,” Adeniyi said.

Vitafoam Nigeria’s shareholders have approved the proposed N979.41 million dividend for the financial year ended Sept. 30, 2020.

The shareholders, at the company’s hybrid Annual General Meeting (AGM), held on Thursday in Lagos, specifically commended the management for the outstanding performance.

The N979.4 million dividend translated into 70k per a share in contrast with 42k paid in 2019 financial year, representing an increase of 64 per cent.

The firm announced a 5.2 percent increase in total sales, 8.1 per cent drop in cost of sales, while the 11.4 per cent reduction in finance was a reward for internal cost efficiency.

The company’s after taxe net profit soared by 72 per cent from N2.39 billion to N4.11 billion; basic earnings per share increased from N3.05 to N1.82 and net assets per share stood at N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.

Speaking at the meeting, Alhaja Ayodele Kudaisi, a member of the Independent Shareholders Association of Nigeria, commended Vitafoam’s declaration of 70k dividend per share.

“The company’s dividend has been on upward trend in the last three years.

“The company’s board and management have demonstrated capacity to compete globally, in spite of the challenges in the operating environment,” Kudaisi said.

Nona Awoh, another shareholder, while commending the firm, urged the board and management to consider the need to commence interim dividend to further boost the shareholders’ Return On Equity.

Dr Bamidele Makanjuola, the Chairman of the company, explained that the company’s performance was driven by topnotch human capital who have demonstrated innovative tendencies and global competitiveness in all metrics.

“The company is blessed with young and vibrant staff. We will drive innovative strategies to sustain growth and profitability despite immense environmental challenges.

“We remain upbeat about the quality of our product range and will continue to invest in capacity- building and products development as pathways to sustaining market leadership.

“I am confident that the uniqueness of our offerings, incredible brands, and the Ccmpany’s cost optimisation approach will further strengthen our overall business performance, with resultant improvement in returns to all our shareholders,“ Makanjuola said.

Mr Taiwo Adeniyi, the Group Managing Director, had earlier noted that the company placed premium on product improvement.

“As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products.

“We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.

“ We launched buy rights, last year, when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counselling to advise on the specific foam for individual customers.

“This has greatly endeared us to our customers. Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam.

“Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State government as our corporate support,” Adeniyi said.

Vitafoam 1

Vitafoam’s turnover grows by N23.44bn in 2020

0

By Tanko Mohammed

Vitafoam Nigeria has attributed its turnover increase of 5.2 per cent from N22.28 billion in 2019 to N23.44 billion in 2020 among other impressive performances to innovation and expansion.

Mr Taiwo Adeniyi, Group Managing Director of Vitafoam, said in Lagos that the company’s investment in its subsidiaries as a growth strategy was beginning to pay off as the growth in total sales was up by 5.2 per cent.

“As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products.

“We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.

“Last year, we launched Buy Rights when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counselling to advise on the specific foam for individual customers,,” he said.

“This has greatly endeared us to our customers. Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam.

“Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State Government as our corporate support.”

The Vitafoam boss added: “Our investment in the subsidiaries as a growth strategy is beginning to pay off. All of them have turned profitable.

“We are not insulated from the tough operating environment as all the indices that should drive growth in the manufacturing sector are weak.

“But due to our innovative efforts, trust on the part of our customers and of course divine grace, our balance sheet today is one of the strongest in the industry.

“We have capacity to sustain the trajectory and we shall continue to reward our shareholders accordingly.”

Adeniyi said that in spite of the adverse impact of COVID-19 pandemic, the company’s turnover rose by 5.2 per cent to N23.44 billion in 2020 from N22.28 billion in 2019.

“Cost of sales dropped by 8.1 per cent from N13.52 billion to N12.43 billion. Gross profit thus rose by 25.7 per cent to N11.01 billion from N8.76 billion.

“Non-core business income rose by 52 per cent from N491 million to N745 million. Interest expenses reduced by 11.4 per cent from N1.05 billion to N930 million. Profit before tax soared by 61.5 per cent to N5.6 billion from N3.5 billion,” he added.

Meanwhile, the manufacturing giant announced that its 5.2 per cent increase in total sales, 8.1 per cent drop in cost of sales, while the 11.4 per cent reduction in finance were rewards for internal cost efficiency.

Specifically, after taxes, net profit soared by 72 per cent from N2.39 billion to N4.11 billion; basic earnings per share increased to N3.05 from N1.82 and net assets per share hit N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.

On the strength of the company’s outstanding performance, the board has recommended a cash dividend of N979.4 million for 2020, 64.5 per cent above N595.4 million paid in 2019.

The current dividend translates into 70 kobo per share as against 42 kobo paid in the preceding year.

Mr Oluropo Dada, Managing Director and Chief Executive Officer, Network Capital, said that shareholders would get higher dividends, while the performance translated into higher valuations of investment for analysts and traders.

“It is a remarkable improvement on all the quantitative and qualitative parameters of the company which expectedly translated to better results with bountiful rewards to all the stakeholders.

“Shareholders are going home with higher dividends, while the performance translates into higher valuations of investment for analysts and traders,” Dada said.

The announcement of the results has attracted investors to Vitafoam shares on the Nigerian Stock Exchange (NSE) and positioned it as one of the most stable stocks, with its current net assets per share of N7.25.

Market watchers believe that Vitafoam’s share price is due for re-pricing on the capital market.