Leading foam manufacturer Vitafoam Nigeria Plc has announced a dividend payout to its shareholders of N1.9 billion, or N1.56 per ordinary share of 50 kobo. The announcement, which is subject to ratification at the Annual General Meeting (AGM) set for March 7, 2024, in Lagos, is a part of the company’s commitment to its shareholder value policy.

In a statement, Vitafoam revealed that its revenue experienced substantial growth, reaching N52.9 billion in 2023, compared to N46.3 billion in the previous year, marking a commendable 14% increase. This performance is particularly noteworthy given the challenging operating environment characterized by various economic headwinds.

The company also reported an increase in total assets, which rose to N49.6 billion in the review period from N39.4 billion in 2022, showcasing financial strength and stability.

Market observers have commended Vitafoam’s resilience and performance, especially considering the harsh conditions faced by manufacturers in Nigeria. Challenges such as the sharp decline in the Naira exchange rate, scarcity of foreign exchange for importing raw materials, high energy costs, weak purchasing power, low disposable income, inflation, and currency devaluation have posed significant hurdles for businesses in the manufacturing sector.

The company’s ability to navigate these challenges and achieve positive results reflects corporate resilience and effective management strategies.

To sustain its high performance, Vitafoam recently invested in a multimillion-dollar machine for its subsidiary, Vitablom in Jos. This strategic move aims to boost turnover, enhance profitability, and increase market share.

Vitafoam’s Group Managing Director, Mr. Taiwo Adeniyi, has emphasized the company’s commitment to Research and Development, ensuring that its top-notch products cater to the specific needs of diverse customers.

Additionally, as part of its Corporate Social Responsibility (CSR) policy, Vitafoam is actively involved in investing in the education and healthcare sectors, contributing to societal development and giving back to the community.