The equity stake of Nigerian multimillionaire businessman Samuel Olaniyi Bolarinde in Vitafoam Nigeria Plc has increased by $8.29 million (N3.44 billion) since April 1.
Bolarinde led the company’s board between 2002 and 2013 after retiring as managing director and CEO in March 2002. He is a substantial shareholder in Vitafoam Nigeria.
The $8.29 million in gains from his stake in the leading foam product manufacturer follow a 71-percent surge in the company’s share price, as analysts and investors digest Vitafoam’s impressive financial results for the first half of the 2020-2021 accounting year.
At press time, 2:30 pm (UTC+1), June 23, the company’s shares traded at $0.035 (N14.20) per unit on the Nigerian Stock Exchange. This is 82-percent higher than the opening price for the year at $0.019 (N7.80) per share. Furthermore, its market capitalization was valued at $43.22 million (N17.76 billion).
Vitafoam is Nigeria’s leading manufacturer of flexible and rigid polyurethane products. Its primary market is Nigeria, with interests in Vitafoam Ghana and Vitafoam Sierra Leone.
In a recent filing, Vitafoam posted revenues of $45.33 million (N18.63 billion) and profits after tax of $6.06 million (N2.49 billion) in the first six months of 2020-2021 on the back of increased demand for its products and an effective cost optimization strategy.
The company’s strong financial performance in the first half of 2020-2021 is an improvement compared to the previous year, when it posted revenues of $29.10 million (N11.96 billion) and profits after tax of $4.11 million (N1.69 billion).
In reaction to the sustained growth in Vitafoam’s earnings, the company’s share price on the local bourse surged from $0.020 (N8.30) per share to $0.035 (N14.20), between April 1 and June 23.
Bolarinde has served on the board of several other companies, including Wema Bank Plc (chairman; 2009-2012); Best Oils Nigeria Limited; National Bank of Nigeria Limited (1999-2003); and, Nigerian Breweries Plc (2015).
As a substantial shareholder in Vitafoam Nigeria, he holds a total stake of 11.87 percent, or 577,786,521.00 ordinary shares in the company. The market value of his stake has increased from $11.67 million (N4.80 billion) to $20.03 million (N8.20 billion).
This translates to a gain of $8.29 million for the multimillionaire in 83 days.