VITAFOAM: DIVIDEND EQUALISATION POLICY SUPPORT PAYOUT, DESPITE 2017 RED ACCOUNTS
The management of Vitafoam Nigerian Plc recently presented its full year-audited report for the period ended September 30, 2017 to the investing community slightly later than the release date for that of 2016, coming below market expectation as it revealed bigger loss than in the corresponding period. The company’s unstable quarterly recovery during the financial year under review finally resulted in a loss, despite the Q1 earnings per share of 6 kobo that graduated to 25 kobo by second quarter, before sliding to 16 kobo at Q3 and thereafter a 12 kobo Loss per share, making it two consecutive years of red numbers. Despite these negative numbers the company has continued to reward its shareholders by going into the reserve, a development that is not healthy for the company and shareholders, regardless of the fact that operating cash flow turned N1.61bn positive from a N2.36bn negative position in 2016. The company’s post-merger, expansion outside Nigeria and the introduction ...