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.