Vitafoam Shareholders Get 30k Per Share Dividend | Independent Newspapers Limited
Newsletter subscribe

Business

Vitafoam Shareholders Get 30k Per Share Dividend

Posted: Jun 5, 2015 at 12:10 am   /   by   /   comments (0)

By Emnmanuel Okwuke  –  Lagos

 

The Board of Vitafoam Nigeria PLC has proposed a dividend payout of N245.7million in respect of the financial year ended September 30, 2014. This represents 30kobo per share in addition to a bonus issue of one new share for five existing shares despite the economic melt down occasioned by dwindling crude oil prices and rising cases of religious insurgency (Boko Haram) in the North Eastern and North Central regions of the country.

The Chairman of the board, Mr. Bamidele Majekodunmi stated this on Thursday, at the company’s 2015 Annual General Meeting (AGM) held in Ikeja, Lagos.

According to him, though the group turnover, declined marginally from N15.59billion in 2013 to N15.51billion in the outgoing year however, profit before tax grew significantly from N614million in 2012/2013 to N926million in 2013/2014. Meanwhile, profit-after-tax increased correspondingly from N394.69 million to N659.89million.

He noted that the market improvement in profit-after-tax amidst severe constraints reflects the outcome of bold cost cutting initiatives introduced and implemented by management during the year under review.

“Amongst these were higher production efficiencies and more proficient distribution and procurement /inventory management systems. The board is justifiably encouraged by this development and has urged the management to sustain the momentum in the new financial year”.

Mr. Makanjuola noted that as a result of this, the company was currently investing in brand repositioning and market development with the goal of strengthening consumer allegiance. “We are cautiously optimistic that the trend of impressive returns will be sustained in the coming years notwithstanding the arduous business environment”.

The Chairman noted that compounding the general state of uncertainty during the 2014 financial year are: the general state of insecurity in the northern states, continuing agitation for resource control in the Niger Delta region and heightened anxiety over the outcome of the 2015 general elections.