LAGOS – Mr Taiwo Adeniyi, acting Managing Director, Vitafoam Nigeria Plc, said on Monday that the company would grow its profit before tax and turnover by 20 per cent annually.
Adeniyi stated this at the company’s ‘facts behind the figures’ held at the Nigerian Stock Exchange (NSE) in Lagos.
He said that the company would work to achieve the growth, increase the trajectory and protect its core business.
The acting managing director said that the company would continue to build advantaged brands to through line extensions, flankers and brand extensions to achieve the target.
He also expressed commitment to the proposed merger of the company and Vono Product Plc.
Adeniyi said that the company was still in the process of consummating the merger process.
“We are still at the proposal stage with details being worked out in the interest of both shareholders,” Adeniyi said.
He said that the company had notified market regulators of the merger plan, adding that further information would be made public at the right time.
The News Agency of Nigeria (NAN) reports that Vitafoam currently holds 47.5 per cent in Vono Product.
Commenting on the company’s performance, Adeniyi said that unstable government policies, high cost of financial operations and unpredictable political environment affected its business in 2014.
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He said that persistent terror activities in the north, lack of enabling infrastructure, products adulteration and volatile and increasing cost of chemicals were headwinds being faced by the company.
Adeniyi, however, said that the company would continue to dominate the industry with strong brand equity, strong assets base and national spread of sales channels.
He attributed the company’s growth to processes and procedures, operational innovation, timely strategy execution and internal efficiencies to grow profit.
On the company’s performance for the Dec. 31, 2014 financial year, he said its turnover was slightly down by 0.6 per cent to N16.71 billion, against N16.81 billion posted in the preceding year.
Profit-after-tax increased by 11.8 per cent to N435 million, compared with N390 million recorded in the comparative period of 2013.
The company proposed a dividend payout of N245.7 million, amounting to 30 kobo per share, in addition to a bonus issue of one new share for five existing shares.
He said that the company would continue to sustain market growth and higher returns to stakeholders in spite of the headwinds. (NAN)
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