Vitafoam Nigeria full year results show N32.03mn after tax loss

Vitafoam Nigeria Plc reported loss after tax (LAT) of N32.032million for the financial year ended September 30, 2016 against after tax loss of N71. 981million recorded in the preceding year 2015.

The group’s audited consolidated and separate financial statements for the period in review show that its profit before tax (PBT) dropped to N61.198million from a preceding year high of N213.097million.

Despite this poor bottom-line figures, the board of the company recommended dividend payment of N125million representing 12kobo per share. The dividend is still subject to shareholders’ approval at the company’s annual general meeting which holds on March 2, 2017.

The results released for shareholders at the Nigerian Stock Exchange (NSE) showed the company’s revenue declined to N13.569billion from a 2015 high of N16.853billion. Gross profit declined to N4.661billion from N5.100billion in 2015.

Operating profit was also down to N888million from N1.148million in 2015. Finance costs moderated to N895.059million from N1.015billion in 2015. Basic earnings per share dropped further to 3.88kobo from 3.74kobo in 2015.

Taiwo Adeniyi, Group Managing Director/ Chief Executive Officer, Vitafoam Nigeria Plc in his preliminary review of the last year’s operations of the manufacturing sector in Nigeria explained that it was a very tough period as the most difficult problem was how to make realistic business decision in the face of continuous uncertainty in view of insecurity, exchange rate, interest rate, devaluation of the Naira and insecurity of lives and property.

Adeniyi who expressed optimism that his company’s board and management had learnt how to operate profitably under recession assured the shareholders of dividend after the company’s Annual General Meeting (AGM) early this year. He commended the shareholders for their support and understanding in the year under review.

“Our shareholders are our pride. We have an obligation to work very hard to ensure that they are rewarded. We have consistently paid dividend. We shall pay dividend for 2016 despite the recession. We have always sustained our culture of shareholder value and we shall continue to appreciate our shareholders’ advice on how to move the company forward. It has been difficult to plan under recession. But we have mastered the terrain. We can now do better planning. Our strategic focus is now to plan by the day. We plan as they come. At least we can now forecast some variables. This is helping us,” Adeniyi said.

Commenting on the manufacturing sector, Adeniyi noted that companies that import most of their raw materials had challenges with the exchange and availability of Dollars due to improper alignment of fiscal and monetary policies. According to him, the federal government’s policy of preferential allocation of Dollars to genuine manufacturers did not achieve desired result because it is cashed backed. He explained that the manufactures could not take advantage of the special window for forex because many of them could not back their high demand with cash while the banks who are supposed to lend money had liquidity problem.

Iheanyi Nwachukwu