The board of Vitafoam Nigeria, on Monday, presented its audited financials for the year ended September 30, 2020, showing that profit significantly outpaced revenue for the period, following which a dividend of N979.41m, or 70 kobo per share. The dividend representing a 64% increase over the N595.434m paid in the corresponding period of 2019, is being proposed for shareholders’ approval at the forthcoming annual general meeting.
According to the details of the result filed with the Nigerian Stock Exchange (NSE), revenue rose by a marginal 5% from N22.283bn in 2019, to N23.443bn, while cost of sales dropped marginally to N12.43bn from N13.52bn, with cost of raw materials and consumables gulped N11.986bn, down from N13.202bn, followed by depreciation and impairment cost at N219.696m, compared to the previous N175.061m. This resulted in a gross profit of N11.013bn, up by N2.25bn or 25.68%.
Other gains and losses soared from N389.831m to N638.976m, driven by N294.447 provision no longer required, being write back of prior year’s value added tax provision and over provision of expected credit loss on trade and related party receivable. The company also earned N121.166m from sale of scrap items, as against the previous N62.124m. Distribution costs increased to N1.054bn from N974.751m; and administrative expenses from N3.733bn in the corresponding period of 2019, to N4.128bn. This resulted in operating profit of N6.47bn from N4.444bn.
Finance income growth was flat at N106.508m from N101.05m, helped by the N79.686m interest on planned assets, compared to the previous N79.677m; just as finance cost was driven by the N676.879m interest on loans and overdraft, which dropped from the previous N904.862m; followed by the N149.71m interest on defined benefit obligation from N121.991m. This resulted in a 62% climb in Profit before tax up from N3.495bn to N5.646bn; while tax expense for the year increased from N1.031bn to N1.73bn. profit for the year leaped from N2.386bn to N4.107bn or 72%; translating to earnings per share of N3.05, which was 69% better than the N1.82 recorded in the preceding full-year.
