Vitafoam Reports N134m Profit In Q3

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By Nse Anthony-Uko

(Sundiata Finance) – The board of Vitafoam Plc, has rekindled investor interests with a of N133.72 million in the third quarter ended June 30, 2017. According to the company’s result on the Nigerian Stock Exchange (NSE), profit before tax stood at N258.14 million, as against a loss of N49.14 million, while after tax profit for the period stood at N133.72 million from the N159.03 million loss, translating to earnings per share of 16.33 kobo, as against the previous loss of 19.42 kobo.

Reviewing the results for period further showed that revenue for the period rose by 34.30 per cent to N14.76 billion from N11 billion, while cost of sales rose by 43.2 per cent from N7.42 billion to N10.62 billion, resulting in gross profit of N4.14 billion, up from N3.57 billion.

Other income rose from N83.38 million to N104.18 million, administrative expenses dropped slightly to N2.3 billion, compared to the previous nine-month’s N2.43 billion, just as distribution expense stood at N586.1 million from N543.28 million, operating profit jumped to N1.26 billion from N679.33 billion, while finance cost rose to N999.68 million from N728.47 million.

Stock market analysts noted that the post-merger numbers also reflected impact of the company’s expansion drive outside the shores of Nigeria, just like introduction of new products that had boosted foreign earnings and revenue from the domestic environment, as the bounced back to profit.

Meanwhile the group managing director and chief executive officer, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi explained that Vitafoam remained committed to value creation and delivery as one of the fundamental principles that define the ’s operations.

He  that the places premium on the realignment of internal processes to cut waste, development of human capital and investment in research and development in consonance with the needs of the customers. Adeniyi stated that the company’s shareholder value would not be compromised, hence the need to remain innovative and competitive.

“We remain committed to our shareholders as ever before to make returns to them. They will not be disappointed because for us as management, our responsibility is to return good dividends to our shareholders. That is our target and they will surely get good return for their investment, “Adeniyi said.