A Foremost manufacturer of foam products, Vitafoam Nigeria Plc has ascribed its impressive performance to six major factors, ranging from strong brand equity to leader and pacesetter advantage. Besides, the company has also hinged its critical success factors to a mix of unique indices including development of strong human Capital and timely execution of strategic plan. Addressing the stockbrokers during the company’s presentation of facts behind the figures yesterday at the Nigerian Stock Exchange, the acting Group Managing Director, Mr Taiwo Adeniyi explained that the company would continue to sustain its culture of ensuring shareholder value.
Adeniyi noted that Vitafoam Nigeria Plc has the largest foam manufacturing and distribution network which facilitates just in time delivery of finished products throughout West African Sub region. He explained that despite the inclement operating environment, the company’s gross profit was up by 5.4 per cent to N5.4 billion while profit after tax rose by 11.8 per cent to N435 million.
Meanwhile, the company has proposed a gross dividend of N246 million and a bonus share of one for every five shares held for approval by the shareholders at the Annual General Meeting scheduled for this month. Adeniyi attributed the strong performance to the following critical success factors: professional and dedicated staff, processes and procedures, internal efficiencies, operational innovation and creativity and timely execution of strategic plan.
Commenting on the company’s competitive advantage, Adeniyi identified what he described as tail winds thus: strong brand equity (Vitafoam and Vono), strong assets base, national spread of sales channels, best in class operational facilities, economies of scale, pioneer advantage including establishment of vitapur and other subsidiaries and pacesetter advantage. He explained that manufacturers in Nigeria are contending with persistent terrorist activities in the North, unpredictable political environment, high cost of financing operations, unstable government policies, lack of enabling infrastructures, products adulteration and volatile and increasing cost of chemicals.
Adeniyi assured the Nigerian Stock Exchange’s Management and stockbrokers that the company would continue to provide information timely in line with the Exchange’s Post Listing requirements. Stockbrokers commended the company for its outstanding performance and advised the management to sustain its culture of ensuring shareholder value. Prior to the presentation of the facts behind the figures, Vitafoam’s management paid a courtesy visit to the management of The Exchange where developmental issues were discussed. Also, the vitafoam’s management visited the trading floor where Adeniyi commended the stockbrokers for their appreciation of the company’s performance. He closed the trading by ringing the closing bell.