Vitafoam Nigeria Plc, a prominent manufacturer of reconstituted foams and household materials, has reaffirmed its commitment to delivering value to investors, even amidst a challenging operating environment marked by high costs and low consumer purchasing power.
In a statement to the Nigerian Exchange Limited (NGX), in compliance with its post-listing requirements, the company reported unaudited interim financial results showing a revenue of N82.58 billion as of September 30, 2024, up from N52.99 billion the previous year, representing a 56% increase. The Group also recorded an operating profit of N7.54 billion, compared to N6.99 billion in the corresponding period.
Despite this revenue growth, the Group’s profit before tax saw a decline from N6.01 billion to N1.525 billion, primarily attributed to a significant rise in the cost of sales, which escalated from N35.04 billion to N52.54 billion. These challenges were compounded by increased foreign exchange costs and other operational expenses.
Taiwo Adeniyi, the Group Managing Director and Chief Executive Officer, stated, “Vitafoam has always navigated challenging environments before and emerged stronger. We are taking proactive measures to mitigate current challenges and capitalize on emerging opportunities. Our focus remains on delivering sustainable value to our shareholders, customers, and stakeholders.”
He emphasized that the company is diligently working to enhance operational efficiency and that its diversified product portfolio is expected to drive future growth. Adeniyi added, “Our innovative products and strategic investments will enhance competitiveness.”
Notably, over 95% of Vitafoam’s sales occur within Nigeria, and all six of its subsidiaries are fully operational. These subsidiaries include:
- Vitafoam Sierra Leone Ltd.
- Vitapur Nigeria Ltd.
- Vitablom Nigeria Ltd.
- Vitavisco Nigeria Ltd.
- Vono Furniture Products Ltd.
- Vitaparts Nigeria Ltd.
Vitafoam’s strong revenue performance and commitment to growth illustrate its resilience and strategic focus on overcoming operational challenges in the current economic landscape.