Kayode Tokede
Vitafoam Nigeria in its unaudited result and accounts for full year ended September 30, 2021 recorded significant increase in revenue but a double-digit growth in cost of sales reduced profits.
The foam-manufacturing company also recorded growth in its total operating expenses, another financial parameter that further highlights severe business operating environment faced by companies operating in the country.
Vitafoam Nigeria reported 50.9 per cent increase in revenue to N35.4billion in 2021 unaudited result and accounts as against N23.44billion reported in 2020.
The breakdown revealed that locally generated revenue was up by 51.23 per cent to N34.5billion in 2021 from N22.83billion in 2020, while revenue generated outside Nigeria rose by 38.6 per cent to N853.87million in 2021 from N615.93million in2020.
The company’s primary geographical segment is Nigeria and over 99.9per cent of the sales of the company are made in Nigeria.
The company has continued to grow its revenue with improved sells in polyurethane/reconstituted foam (mattress, cushions, pillows, sheetings) and allied products that conforms with international standards, and applicable statutory.
The company had attributed its steadily impressive performance to continuous investment in innovative products and services across its businesses.
Despite the inclement operating environment, Vitafoam has remained resilient with an average gross margin of 37.90 per cent in the last five years and the company’s shares is one of the most sought after on the Nigerian Exchange Limited (NGX) due to track record of consistent profitability.
It stocks price Year-Till-Date gained 181 per cent to close at N21.9 as at December 3, 2021 from N7.80 it opened for trading in 2021.
innovative products
The Group Managing Director, Vitafoam Nigeria, Mr. Taiwo Adeniyi had explained that company was no longer just about manufacturing of rigid foams but had developed other innovative products through its subsidiaries in Nigeria and overseas.
From the profit & loss figures, Vitafoam cost of sales rose by 69 per cent to N21.01billion in 2021 from N12.43billion reported in 2020.
Cost of goods sold was driving force behind Vitafoam Nigeria growth in cost of sales as it gained 69 per cent to N20.9billion in 2021 from N12.36billion in 2020, while Labour Cost rose by nearly 13 per cent to N80.8billion in 2021 from N71.77billion in 2020.
The interplay between revenue and cost of sales dragged gross profit in 2021 to N14.37billion, an increase of 30.4 per cent from N11.01billion reported in 2020.Vitafoam Nigeria’s non-core business transactions closed unaudited 2021 at N415.34million […]