By Peter Egwuatu
Vitafoam Nigeria Plc net asset per share is now N7.25 following its improved 2020 financial performance released to the investing public recently.
This is about 54.3 per cent above the N4.70 recorded in 2019.
The company has attributed the performance despite the inclement operating environment, to innovation and expansion.
It announced 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 was a reward for internal cost efficiency.
Specifically, Profit After Tax rose by 72 per cent to N4.11 billion from N2.39 billion and the basic earnings per share increased to N3.05 from N1.82.
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.
Commenting on the Company’s performance, its Group Managing Director and Chief Executive, Mr Taiwo Adeniyi said: “Innovation is the drive. 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. This has greatly endeared us to our customers.
“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.”