Vitafoam Nigeria Plc, a leading manufacturer of rigid and flexible foam products partly owned by Nigerian polyurethane tycoon Samuel Bolarinde, reported a profit of N4.93 billion ($11.2 million) at the end of its 2022 fiscal year despite challenges in its operating environment.
The Nigeria-based flexible and rigid polyurethane product manufacturer reported a profit of N4.93 billion ($11.2 million) in its recently published unaudited consolidated and separate financial statements for the year ending Sept. 30, a 7.3-percent increase over the N4.6 billion ($10.48 million) that it posted last year.
Despite a 31.45-percent increase in revenue from N35.4 billion ($80.6 million) to N46.5 billion ($106 million) during the period under review, owing to a sustained increase in demand for foam products for the year, Vitafoam’s earnings failed to grow faster than revenue as a surge in costs and expenses pushed earnings growth to single digits.
Apart from the significant increase in its direct production costs, which had a significant impact on the group’s earnings, Vitafoam’s earnings growth at the end of its 2022 fiscal year was also hampered by increased administrative expenses from N4.56 billion ($10.4 million) to N7.14 billion ($16.3 million).
As a result of the group’s strong financial performance, total assets increased from N31.8 billion ($72.4 million) to N38.9 billion ($88.6 million), and accumulated profit rose from N11.3 billion ($25.7 million) to N14.02 billion ($31.9 million).
Vitafoam is the leading manufacturer of rigid and flexible foam products in Nigeria. It runs a massive foam manufacturing and distribution network in West Africa, allowing for just-in-time delivery of finished products.
Bolarinde, a Nigerian industrialist and polyurethane tycoon who has served on the boards of several other Nigerian companies, including Wema Bank Plc (chairman; 2009-2012) and Nigerian Breweries Plc (2015), owns a 13.03-percent stake in Vitafoam.
