Vitafoam Offers N525m Dividend, Net Profit Up 309.47%

The board of Vitafoam Nigeria, on Tuesday, put smiles on the faces of shareholders to close the year, releasing the financials for the year ended September 30, 2019, recommending a 42 kobo dividend per share or N525m for shareholders’ approval at the annual general meeting slated for Lagos March 5, 2020.

According to the company’s audited financials for the period, there was growth in revenue, even as the management successfully constrained the rise in operating expenses, especially the cost of sales, as a result of which gross profit climbed by N2.906bn or 49.63% for the period, while net profit ballooned by 309.47%.

Revenue for the year rose to N22.283bn, up by N2.749bn or 14.07% from N19.534bn, of which N21.72bn was earned within Nigeria, while N53.071m was from outside the country, compared to N18.778bn and N755.666m in the preceding year. The cost of sales stood at N13.52bn from N13.677bn, the bulk of which was the N13.202bn cost of raw materials and consumables that dropped slightly from N13.353bn; followed by the depreciation of N175.063m, as against the previous N178.075m; and labour cost amounting to N143.164m, a marginal drop from N146.385m. This left a gross profit of N8.762bn, from the previous N5.856bn.

Other gains and losses rose slightly to N389.831m, from the previous N380.524m, lifted mainly by the N113.884m profit on disposal of investment property, leased equipment and motor vehicle during the period; as well as exchange gains of N116.71m, an improvement over the N152.958m recorded in prior year. Administrative expenses climbed from N3.380bn to N3.733m, the lion’s share of which was the N1.711bn, compared to N1.406bn in 2018. Distribution costs during the period increased from N794.192m to N974.751m. Operating profit therefore improved by N2.352bn or 112.44% to N4.444bn from N2.092bn.

Finance income climbed to N101.06m from N79.186m, with interest on planned assets growing to N79.677m, from N75.793m; while interest on deposit jumped N21.383m, from just N3.393m. Finance cost however reduced by N327.7m or 23.79% to N1.049bn, as against N1.377bn in the preceding full-year, of which interest on loans and overdraft, being the bulk, dropped from N1.24bn in 2018 to N904.862m.

Profit before tax for the year soared to N3.495bn, from N793.852m.

A tax expense of N1.031bn, a significant increase from just N191.929m in the corresponding period of 2018, arising from the growth in income tax to N922.711m, from N255.499m; and education tax from N26.48m from N69.128m. Capital gains tax increased also to N9.122m, from N5.72m.

These left net profit at N2.464bn, after soaring by N1.862bn or 309.47%, when compared to the previous N601.923m. The net profit translated to earnings per share of 182 kobo, an equally significant increase from just 57 kobo each in the corresponding period of 2018.

https://investdata.com.ng/2020/01/vitafoam-offers-n525m-dividend-net-profit-up-309-47/