*Shareholders approve N1.95bn dividend
Business a.m
Vitafoam Nigeria Plc shareholders have approved a dividend payout of N1.95 billion, with each share worth 50 kobo set to receive a dividend of N1.56, following a positive rate of returns for the financial year ended September 2023.
The resolution was passed at the company’s 62nd Annual General Meeting (AGM) held in Lagos. The dividend approval is consistent with the company’s financial performance and reflects its commitment to rewarding shareholders
The leading mattress, pillow, bedding and furniture manufacturer, reported revenue of N52.986 billion, up 14 per cent from N46.310 billion in the previous fiscal year, the highest level of revenue in the last five years for the company.
In approving the dividend, shareholders showered encomium on the company’s board and management for the stellar performance in the period of economic downturn.
According to Mathew Akinlade, president of the Noble Shareholders’ Solidarity Association (NSSA), Vitafoam’s performance demonstrates the company’s resilience in the face of challenges. Akinlade commended the company for being able to maintain strong performance despite facing tough economic conditions in Nigeria, including high inflation and difficulties in obtaining foreign exchange.
“It is therefore commendable to see that Vitafoam is able to grow profit and pay dividend, which is even a bit higher than the previous one. We must commend the efforts of the board and management team. This year’s performance shows that the future is bright,” he said.
Anthony Omojola, former national coordinator of the Independent Shareholders Association of Nigeria (ISAN), also praised Vitafoam for its positive rate of return, especially given the challenging business environment in Nigeria. Omojola noted that many companies in Nigeria are struggling to stay afloat and that Vitafoam’s performance is therefore noteworthy.
Rosemary Egonmowan, retiring chairman of Vitafoam, acknowledged the difficult operating environment in her address to shareholders. She expressed satisfaction with the company’s outstanding performance and assured shareholders that Vitafoam would continue to innovate to maintain its competitive edge.
“The company will intensify innovation and invest significantly in the brand while maintaining solid relationships with the trade partners and other stakeholders towards ensuring sustainable profitability of business,” Egonmowan added.
Taiwo Adeniyi, group managing director and CEO of Vitafoam, attributed the company’s growth to its strong brand and industry leadership position. He said that the growth in revenue was a testament to the resilience of the brand and that the company would continue to focus on efficiency and market expansion.
