Vitafoam Nigeria Plc (NSE ticker: VITAFOAM) released impressive financial statements for the year ended 30 September 2020, as the company is determined to ensure that its products are made visible in every town and village in the country.
Revenue: Vitafoam Nigeria Plc reported a 5% increase in revenue to N23.44 billion in 2020, from N22.28 billion recorded in 2019. Notably, the company reduced its cost of sales by slightly over a billion naira despite the rise in revenue.
Thus a 25.68% rise in gross profit to N11.01 billion in 2020 from N8.76 billion in 2019 was recorded, with a gross margin of 46.98% in 2020 up from 39.33% posted in 2019.
The company earned 97.37% of its 2020 revenue (N22.83 billion ) within Nigeria and the rest from outside the country.
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Administrative expenses and distribution cost amounted to N4.13 billion and N1.054 billion respectively within the year under review.
Profit before income tax rose by 62% to N5.65 billion in 2020 from N3.50 billion in 2019.
The company paid N1.73 billion tax in 2020, against N1.03 billion it paid in 2019.
Profit for the year jumped by 72% to N4.11 billion in 2020 from N2.39 billion in 2019. A net profit margin of 17.52% up from 10.71% recorded in 2019.
Basic Earnings Per Share rose to N3.05 in 2020 from N1.82 in 2019.
DIVIDEND The Board has recommended a dividend of N875.59 million representing 70kobo per share (a 69% increase from 42kobo paid in 2019) to shareholders for declaration at the next Annual General Meeting. The dividend recommended when approved, is subject to withholding tax at the appropriate rate.
The total assets of Vitafoam Nigeria Plc rose by 56.54% to N21.64 billion in 2020 from N13.82 billion in 2019.
Major changes in the asset column:
Property, plant and equipment rose to N5.54 billion in 2020 from N2.97 billion in 2019
Cash and cash equivalents rose to N6.92 billion from in 2020 N779.36 million in 2019, as the company maintained a robust cash flow during the financial year.
Total equity rose by 51% to N9.04 billion in 2020 from N5.97 billion in 2019 due to over 3 billion naira rise in retained earnings to N7.77 billion in 2020 from N4.66 billion in 2019.
Total liability rose by over 4 billion naira to N12.60 billion in 2020 from N7.85 billion in 2019.
The current ratio rose to 1.84 in 2020 from 1.55 in 2019.
Vitafoam Nigeria Plc donated mattresses and pillows as Covid’19 intervention to Lagos, Kano and Plateau States Governments amounting to N1.25 million.
At the close of trading on 31 December 2020, the equity price rose by 2.63% to close at N7.80 per share. It was one of the top ten best-performing stocks on the NSE in 2020.
About Vitafoam Nigeria Plc
Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible, reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which 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, Vitafoam’s brands remain household names in the Country. The Company 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 NIS ISO 9002 Certificate was obtained in 2001 and upgraded to NIS ISO 9001: 2008 in 2015. The certification body recently re-certified the company and upgraded its certificate to ISO 9001:2015 in November, 2020.
The company and her subsidiaries (Vitapur Nigeria Limited, Vitablom Nigeria Limited, Vitavisco Nigeria Limited and Vitafoam Sierra Leone Limited) engage in the manufacture, marketing and distribution of flexible/rigid foam and fibre products and textile linens in Nigeria and across other West African countries. These are complimented by quality furniture products (metal and wood) from Vono Furniture Products Limited, a wholly owned subsidiary of Vitafoam.
Dr. Bamidele O. Makanjuola is the Chairman of the company with Mr. Taiwo A. Adeniyi as its Group Managing Director/CEO.
By: Ifunanya Ikueze
