Vitafoam Nigeria on Monday became the first company to present its earnings report in 2018, as the directors submitted its audited financials for the year ended September 30, 2017, offering to pay a dividend of 15 kobo per share, despite the loss after tax resulting from the twin effects of the increased finance costs and tax expense for the period under review.
The directors are to propose a total dividend of N156.36m at the annual general meeting on March 8, 2018, the company explained in a note to the account, comprising N125.04m, or 12 kobo per share relating to year ended September 30, 2016, as against N245.7m, or 25 kobo each, “paid by Vitafoam Nigeria Plc (Company) in arrears in the year 2017. Vitablom Nigeria Limited also paid a dividend of N30m (15 kobo per share) for the same period.
According to the score-card, turnover for the period rose to N17.695bn, up by N4.125bn or 30.4% from the restated 2016 figure of N13.569bn; just as cost of sales rose by N3.698bn or 41.51% from N8.907bn to N12.606bn; leaving gross profit at N5.089bn; up from N4.661bn.
Other gains stood at N283.565m from N284.856m; while administrative expenses dropped slightly from N3.426bn to N3.313bn; just as distribution costs climbed to N726.182m from N632.05m; following which operating profit increased from N888m to N1.333bn.
Finance income dropped from N68.257m to N61.152m; finance costs jumped to N1.376bn, up by N481.755m or 53.82% from N895.059m in 2016. The bulk of this was the N1.164bn interest on loan and overdraft, compared to the previous N774.404m; just as other interest paid rose to N115.876m to N88.558m.
This reduced profit before tax to N18.133m from N61.198m; tax expense increased from N93.23m to N145.823m; which increased loss after tax to N127.69m from N32.032m, representing a loss per share of 15 kobo, as against prior year’s four kobo.