Vitafoam Nigeria Plc, a leading manufacturer of rigid and flexible foam products, delivered mixed financial results for the fiscal year ended September 30, 2024, as naira devaluation sharply reduced profits despite impressive revenue growth.
The company, partly owned by Nigerian polyurethane magnate Samuel Bolarinde, reported a 56% revenue surge, from N52.9 billion ($34.3 million) in 2023 to N82.64 billion ($53.6 million) in 2024, driven by robust sales of mattresses, pillows, and other foam products. However, profit plummeted by 89%, from N4.37 billion ($2.83 million) to N952.19 million ($618,000), due to soaring finance costs of N7.13 billion and foreign exchange losses of N12.7 billion ($8.2 million), reflecting the impact of Nigeria’s volatile economic environment.
Despite these challenges, the board recommended a dividend of N1.375 billion ($895,000), equivalent to N1.05 ($0.00068) per share, subject to approval at the upcoming Annual General Meeting.
Vitafoam’s expansion into the Economic Community of West African States (ECOWAS) region continues to show promise. The Sierra Leone factory, producing high-quality foam products for local use and export to Guinea and Liberia, has experienced strong market acceptance, aligning with the company’s strategy to enhance regional reach and improve living standards.
Total assets grew marginally, from N49.66 billion ($32.2 million) to N51.35 billion ($33.3 million), while retained earnings fell from N15.43 billion ($10 million) to N14.07 billion ($9.12 million), reflecting the strain of rising costs and currency devaluation.
Under Samuel Bolarinde’s strategic guidance, Vitafoam remains a dominant force in Nigeria’s foam manufacturing sector, leveraging its vast distribution network across West Africa. Bolarinde, who owns a 12.03% stake in the company, also holds key roles at Wema Bank Plc and Nigerian Breweries Plc, further solidifying his influence in Nigeria’s business landscape.
While naira devaluation presents ongoing challenges, Vitafoam’s robust revenue growth and regional expansion provide a foundation for resilience. Successfully navigating currency volatility and capitalizing on ECOWAS market opportunities will be pivotal in sustaining shareholder value and driving long-term growth.
