“While turnover grew substantially, profitability was hobbled by raw materials price inflation at both local and international markets,” the Vitafoam chief said.
The Chairman of Vitafoam Nigeria Plc, Bamidele Makanjuola, has announced his retirement after ten years of service, in line with the company’s tenure policy.
Mr Makanjuola made this known while addressing the company’s shareholders at its 61st Annual General Meeting (AGM) in Lagos on Thursday.
He commended the company’s board, management and shareholders for their support throughout his tenure.
He said that the company shall continue to post strong earnings and generate shareholder value, given its team of innovative management and staff, irrespective of vagaries in the operating environment.
“While turnover grew substantially, profitability was hobbled by raw materials price inflation at both local and international markets.
“In addition, we had to contend with a sharp decline in naira exchange rate relative to other major currencies, the paucity of foreign exchange, high inflation, poor purchasing power and low disposable income of consumers, among others.
“I would like to inform you that this is the last AGM at which I shall address you as the Chairman of Vitafoam Nigeria Plc., having served out a full term, in line with the company’s tenure policy for non-executive directors.
“Together we have moved boundaries and broken glass ceilings and while some of our plans might not have turned out exactly as envisioned, we have persevered with your support to move the company to the next level in our collective quest for greatness.
“With renewed confidence, efforts will be intensified to grow our business lines by expanding Vitafoam’s product offerings,” Mr Makanjuola said.
The President of Noble Shareholders Solidarity Association, Mathew Akinlade, lauded the outgoing chairman, saying he showed exemplary leadership, characterised by integrity and dedication.
He said that during his tenure, the company recorded exponential progression in virtually all performance indicators.
“A peep into just the last five-year performance alone is quite revealing that Vitafoam under Makanjuola grew tremendously.
“For instance, the revenue grew from N19.5 billion in 2018 to N46.3 billion in 2022, an increase of 137 per cent.
“The earnings per share moved from 57k to 338k, an increase of 493 per cent.
“The man deserves to be celebrated,” he said.
Vitafoam Group Managing Director, Taiwo Adeniyi, declared a dividend payout of N1.9 billion, translating into N1.52 per ordinary share of 50k each for the 2022 financial year.
According to him, the dividend, a commitment to a positive rate of return, is evidence of the company’s stellar performance, in spite of the tough operating climate.
He hinged the company’s ability to weather the storm on the innovation and corporate culture of its quality products and services.
“You may see two products looking so much alike in the market but they do not cost the same price.
“The intrinsic values in our products stand us out and we have created a niche market for ourselves as we invest heavily in research and development.
“And we customize our products to address the needs of our diverse customers, including consideration for age and gender.
“This is what is standing us out in the marketplace,” Mr Adeniyi said.