Shareholders of Vitafoam Nigeria Plc have approved payment of N1.31 billion as cash dividends for the 2024 business year as the company reaffirmed its commitment to sustainable growth.

At the annual general meeting in Lagos, shareholders said the company’s decision to sustain its unbroken historical dividend payment record underlined board and management’s commitment to shareholders’ value.

The N1.31 billion dividend, representing a dividend per share of N1.05 highlighted the 2024 performance.

Key extracts of the audited report and accounts for the year ended September 30, 2024 showed that Vitafoam Nigeria’s turnover rose by 56 per cent from N52.9 billion in 2023 to N82.6 billion in 2024. But the impact of the top-line growth was moderated by foreign exchange loss.

A shareholders’ leader and activist, Mr. Adebayo Adeleke said the dividend payment showed that the company has the interest of its shareholders at heart.

“With the impressive performance of the subsidiaries, we are becoming a conglomerate. There is a need to strengthen the board structure of the subsidiaries,” Adeleke said.

National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare said Vitafoam’s outstanding performance despite the tough operating environment was due to a legacy of excellent foundation laid over the years.

“The outstanding performance under the leadership of the current chief executive officer is a testament to a legacy of good foundation by every chief executive officer of the company over the years. While commending the board, I also advise that more women be brought on the board as against the current situation of one woman. This will promote gender-balance and enhance corporate governance,” Bakare said.

Chairman, Vitafoan Nigeria, Zakari Sada, said appropriate strategies had been put in place to position the company for stellar performance.

He explained that the increase in revenue attested to the strength and acceptability of the Vitafoam brand.

He however noted that the positive top-line performance was undermined by the huge foreign exchange loss posted during the year, due majorly to impact of harmonisation of exchange rate.

“I would like to assure you all of a bright light at the end of the tunnel as strategies are already being implemented to mitigate the impacts of these external factors on our business going forward,” Sada said.

Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi said the group’s strategic focus on operational efficiency, innovative product offerings, and customer satisfaction has enabled it to navigate the challenging environment and achieve significant growth.

“We remain optimistic about the future and are confident that our strategies will continue to yield positive results,” Adeniyi said.

SOURCE: THE NATION