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Vitafoam Maintains Successful Brand
- By Kayode Ogunwale
- Published March 15th, 2010
- StockWorld
- Unrated
VITAFOAM Nigeria Plc is one of the nation’s leading manufacturers of flexible, reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just-in-time delivery of its products throughout Nigeria.
Vitafoam Plc was incorporated on 4th August, 1962 and listed on the floor of the Nigerian Stock Exchange (NSE) in November 1978 under industrial and domestic products; Vitafoam’s successful brands remain household names in the country.
The company’s vision to be the foam manufacturer of first choice is being achieved through its mission of continuously improving the products quality and providing world class after sales service.
Its nature of business is manufacturing and distribution of polyether foam, reconstituted foam, rigid foam, polyester and vitabond.
Financing
Authorized share of Vitafoam Plc in 2008 was 1.2 million ordinary shares of 50 kobo each worth N600 million remain the same as at 2009 financial year, while it’s issued and fully paid capital in 2008 was 819 million ordinary shares of 50 kobo valued at N409.500 million in to stand at the same figure and value at the end of 2009 year. The fixed assets of the company rose from N1.346 billion in 2008 to N1.651 billion as at the end of 2009 indicating an increase of N305.278 million or by 23 per cent.
The company’s current assets rose by 16 per cent or N515.483 million to N3.746 billion in 2009 from N3.230 billion in 2008. Its current liabilities stood at N2.735 billion at the end of its 2009 financial year. This represents a N633.185 million growth or 30 per cent in the company’s liabilities compared with its 2008 figure of N2.101 billion
Profitability
Vitafoam recorded a turnover of N1.587 billion or 19 per cent appreciation in 2009, from N8.172 billion in 2008 to N9.759 billion.
Cost of sales of the company was N5.774 billion in 2008 and it came to N6.853 billion in 2009.
Gross profit went up from N2.398 billion in 2008 to stand at N2.905 billion in 2009 indicating an increase of N507.649 million or 21 per cent.
The operating profit of the company dropped from N799.863 million in 2008 to N690.581 million in 2009; representing a decrease of N109.282 million or 14 per cent.
Profit before taxation and non-controlling interest dropped by N232.804 million or 23 per cent in 2009. The company made N1.014 billion in 2008, N780.915 million in 2009. Profit after taxation but before non-controlling interest was N698.296 million in 2008, and in 2009, it was N510.776 million. It dropped by 27 per cent or N187.520 million. It recorded N1.756 million which is the first time in the last five financial years.
Liquidity
In 2008, current ratio was 1.5:1, as it dropped to 1.4:1 in 2009. This means that in 2008, its current assets covered 150 per cent of its current liabilities. And in 2009, situation also changed as its current assets only covered 140 per cent.
In 2008 its liquidity ratio was 0.54:1 and this stood at 0.54:1 in 2009. The same liquidity position was presented when the stock is taken out of the current assets. In 2008, its current assets less stock can cater for 54 per cent of its current liabilities, while in 2009, it can take care of 54 per cent.
Management
Chief Samuel Bolarinde is the chairman of the board and Dr. Bamidele Makanjuola is the managing director of the company.
Mr. Bashiru Lasisi was appointed as executive director of the company in 1996 and retired from the position in March 2004. He was however re-appointed to the board on September 2, 2004 in non-executive capacity, Mr. Joel Ajiga joined Vitafoam Nigeria Plc in 1991 as production manager and worked in all the company’s factory locations.
He was the head of technical until his appointment as technical director in December 2008; Mr. Brabindoh Ogun joined Vitafoam Nigeria Plc as head, finance & accounts in January 2008 and was appointed executive director (Finance & Accounts) in December 2008, Mr. Peter Folikwe joined Vitafoam Nigeria Plc as assistant sales manager in August 1991 and left for MTN Nigeria Communications Limited in 2001.
He returned to Vitafoam Nigeria Plc in August 2006 as head, sales & marketing department and was appointed the sales and marketing director in December 2008, Mr. Sam Okagbue and Engr. (Mrs.) Florence Seriki was appointed on 1st of October, 2009 while Mr. Hassan Usman was appointed on 1st of January, 2010.
Score Card
The performance of the company during the year under review was not impressive as it recorded dividend per share of 25 kobo in 2009 against 30 kobo in 2008 financial year, this is 5 kobo or 17 per cent drop.
The company also records earning per share of 63 kobo during the year under review lower than 85 kobo recorded in 2008.
Vitafoam Plc was incorporated on 4th August, 1962 and listed on the floor of the Nigerian Stock Exchange (NSE) in November 1978 under industrial and domestic products; Vitafoam’s successful brands remain household names in the country.
The company’s vision to be the foam manufacturer of first choice is being achieved through its mission of continuously improving the products quality and providing world class after sales service.
Its nature of business is manufacturing and distribution of polyether foam, reconstituted foam, rigid foam, polyester and vitabond.
Financing
Authorized share of Vitafoam Plc in 2008 was 1.2 million ordinary shares of 50 kobo each worth N600 million remain the same as at 2009 financial year, while it’s issued and fully paid capital in 2008 was 819 million ordinary shares of 50 kobo valued at N409.500 million in to stand at the same figure and value at the end of 2009 year. The fixed assets of the company rose from N1.346 billion in 2008 to N1.651 billion as at the end of 2009 indicating an increase of N305.278 million or by 23 per cent.
The company’s current assets rose by 16 per cent or N515.483 million to N3.746 billion in 2009 from N3.230 billion in 2008. Its current liabilities stood at N2.735 billion at the end of its 2009 financial year. This represents a N633.185 million growth or 30 per cent in the company’s liabilities compared with its 2008 figure of N2.101 billion
Profitability
Vitafoam recorded a turnover of N1.587 billion or 19 per cent appreciation in 2009, from N8.172 billion in 2008 to N9.759 billion.
Cost of sales of the company was N5.774 billion in 2008 and it came to N6.853 billion in 2009.
Gross profit went up from N2.398 billion in 2008 to stand at N2.905 billion in 2009 indicating an increase of N507.649 million or 21 per cent.
The operating profit of the company dropped from N799.863 million in 2008 to N690.581 million in 2009; representing a decrease of N109.282 million or 14 per cent.
Profit before taxation and non-controlling interest dropped by N232.804 million or 23 per cent in 2009. The company made N1.014 billion in 2008, N780.915 million in 2009. Profit after taxation but before non-controlling interest was N698.296 million in 2008, and in 2009, it was N510.776 million. It dropped by 27 per cent or N187.520 million. It recorded N1.756 million which is the first time in the last five financial years.
Liquidity
In 2008, current ratio was 1.5:1, as it dropped to 1.4:1 in 2009. This means that in 2008, its current assets covered 150 per cent of its current liabilities. And in 2009, situation also changed as its current assets only covered 140 per cent.
In 2008 its liquidity ratio was 0.54:1 and this stood at 0.54:1 in 2009. The same liquidity position was presented when the stock is taken out of the current assets. In 2008, its current assets less stock can cater for 54 per cent of its current liabilities, while in 2009, it can take care of 54 per cent.
Management
Chief Samuel Bolarinde is the chairman of the board and Dr. Bamidele Makanjuola is the managing director of the company.
Mr. Bashiru Lasisi was appointed as executive director of the company in 1996 and retired from the position in March 2004. He was however re-appointed to the board on September 2, 2004 in non-executive capacity, Mr. Joel Ajiga joined Vitafoam Nigeria Plc in 1991 as production manager and worked in all the company’s factory locations.
He was the head of technical until his appointment as technical director in December 2008; Mr. Brabindoh Ogun joined Vitafoam Nigeria Plc as head, finance & accounts in January 2008 and was appointed executive director (Finance & Accounts) in December 2008, Mr. Peter Folikwe joined Vitafoam Nigeria Plc as assistant sales manager in August 1991 and left for MTN Nigeria Communications Limited in 2001.
He returned to Vitafoam Nigeria Plc in August 2006 as head, sales & marketing department and was appointed the sales and marketing director in December 2008, Mr. Sam Okagbue and Engr. (Mrs.) Florence Seriki was appointed on 1st of October, 2009 while Mr. Hassan Usman was appointed on 1st of January, 2010.
Score Card
The performance of the company during the year under review was not impressive as it recorded dividend per share of 25 kobo in 2009 against 30 kobo in 2008 financial year, this is 5 kobo or 17 per cent drop.
The company also records earning per share of 63 kobo during the year under review lower than 85 kobo recorded in 2008.
