- Vitafoam Nigeria Assures of Higher Return
The board of directors of Vitafoam Nigeria Plc has assured shareholders that it would work to more than triple dividend payout for the current business year as the group continues with the implementation of key strategies aimed at strengthening its operations.
At the annual general meeting yesterday in Lagos, shareholders unanimously approved the payment of N156 million as cash dividend for the 2017 business year, representing a dividend per share of 15 kobo. Shareholders however called on the directors of the company to increase payout in the current business year.
Addressing the shareholders, Chairman, Vitafoam Nigeria Plc, Dr. Bamidele Makanjuola, said the board and management would work to ensure that the company delivers better returns to shareholders in the years ahead.
According to him, with the improvement in the macroeconomic environment and injection of N2 billion new capital into the operations of the company, Vitafoam Nigeria will leverage its innovative pedigree and strong presence in markets nationwide to achieve superior performance.
He noted that most of the subsidiaries of the company have now reached maturity and are well-positioned to bolster shareholder value and outpace competition.
“After every economic recession, historical antecedents suggest that a new era of prosperity and progress usually emerges. Our company is fully cognizant of this trend and has already utilised the difficult year to fine-tune its strategies for the incipient opportunities,” Makanjuola said.
He explained that a strategic review of the company’s business units was undertaken to ascertain continued alignment with broader transformation objectives in order to position the group for accelerated profitability.
He added that the company had completed its expansion project and has begun to consolidate for optimal performance as reflected in the operations of its subsidiaries.
“Vitapur Nigeria Limited has become a source of hope and inspiration. It has posted profit for the second year running. Our moulded foam products, Vitavisco Nigeria Limited has continued to operate profitably, it is growing slowly but steadily. Vitablom Nigeria Limited has maintained its profit-making streak, although this was attenuated during the year by the adverse economic conditions in the country,” Makanjuola said.
He said the directors of the company will look into the popular demand for recapitalisation of the company through a rights issue by the shareholders, assuring that the board will take the appropriate decision in the best interest of the shareholders.
Shareholders who spoke at the meeting commended the company’s board and management on its long tradition of stability and regularity of dividends despite the tough operating environment.
Shareholder activist and founding member of the Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo commended the company’s foresight in its diversification into pre-fabricated buildings and leather products, which could be exported to earn foreign exchange.
In his remarks, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said the first quarter result of the company for the current business year has already shown that it could attain the target of significant increase in dividend payout.
He assured shareholders that the management would remain prudent in its financial management while exploring opportunities to improve the performance of the business units.