Vitafoam records abysmal 2012 performance as profit, turnover fall

By NKIRUKA NNOROM

Vitafoam Plc has announced a marginal decline in its financial performance for the year ended September, 2012 with both the profit and turnover dropping by 3.22 percent and 0.48 percent respectively.

Following this, the company did not declare any dividend for the shareholders in the out-gone year.

This was inspite of assurances given by the chairman, Chief Samuel Bolarinde, at the last meeting with shareholders that the management would continue to strive to deliver increased value to its stakeholders having secured N448 million loan from IFC in the previous year.

According to the results made available at the Nigerian Stock Exchange, NSE, the turnover fell to N14.45 billion, as against N14.52 billion reported in equivalent period of 2011.

Profit before tax went down to N813.25 million from N823.57 million, while the profit after tax for the period also fell to N502.12 million from N518.85 million, representing 1.25 percent and 3.22 percent decrease respectively.

Further breakdown of the result showed that earning per share declined to 68 kobo compared to 69 kobo in 2011.

Speaking at the last annual general meeting, Bolarinde, had assured that the company’s incursion into the West African market was aimed at boosting the performance of the company in order to give better value to its shareholders.

He further promised that the $2.8 million ( N448 million) loan granted Vitafoam Sierra Leone Limited, by the International Finance Corporation (IFC), had been deployed to the construction of  its foam factory.