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Vitafoam Nets N190m Profit, Secures N2bn Loan

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Vitafoam Plc
  • Vitafoam Nets N190m Profit, Secures N2bn Loan

In a bid to boost its working capital, Vitafoam Nigeria Plc has secured a four-year N2bn soft loan from the Bank of Industry at a concessionary interest rate.

The firm posted N190m net profit for the financial year ended September 30, 2017.

The BoI’s 12 per cent annual interest capital support facility, compared with the 25 per cent commercial bank rate as of last year, is expected to reduce Vitafoam’s cost of finance and enhance the company’s ability to directly import its raw materials.

Speaking on the company’s financial performance for the year ended September 30, 2017, the Group Managing Director, Vitafoam Nigeria, Mr. Taiwo Adeniyi, noted that Vitafoam, the only quoted company in the group, earned a profit after tax of N190m last year as against N412m in the preceding year, despite the tough operating climate.

According to him, the group’s and company’s revenues also grew by 30 per cent and 31 per cent, respectively, compared to prior year.

He said, “The good news is that Vitafoam has secured N2bn structured working capital support facility with the Bank of Industry at 12 per cent per annum interest rate. When compared to commercial banks’ 24.5 per cent average interest rate borne in 2017, there will be a huge favourable reduction in finance cost by a minimum of N240m, representing 20.4 per cent.

“Secondly, the previously depleted working capital will be boosted by the BoI’s four-year working capital support. This will enable Vitafoam to source its major raw materials directly from overseas manufacturers, thereby retaining middlemen margin in the business. A minimum of 15 per cent margin will be saved on every direct import of major raw materials.”

Adeniyi explained that despite the 15.98 per cent inflation in the economy, through firm cost control measures, Vitafoam’s management reduced administrative expenses by three per cent (group) and four per cent (company), while distribution cost reduced from five per cent to four per cent.

He noted that due to weak working capital and paucity of foreign exchange for letters of credit, the company’s over 80 per cent of raw materials were locally purchased, thereby incurring more cost.

He however stated that despite the challenges, the company’s directors recommended N156.36m dividend to be paid to shareholders from distributable profit.

Speaking on the outlook for the company this year, Adeniyi said, “We have also created new business lines. Specifically, Vitaparts Nigeria Limited, a new subsidiary, established to manufacture oil filters, is expected to commence operation in the third quarter of the current financial year while importation and installation of the manufacturing plant will be concluded in the second quarter of the year, all things being equal.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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