Vitafoam Nigeria Plc has assured shareholders of improved returns in the years ahead in spite of the challenges in the operating environment.
Chairman, Vitafoam Nigeria Plc, Dr. Dele Makanjuola, who gave this assurance at the company’s annual general meeting, said that despite the difficulties faced in the preceding years, the company will remain resolute in the implementation of nascent strategies that will enable the harvesting of low-hanging opportunities in the economy to improve growth prospects across several markets.
He said the innovation and new products development will be the key drivers of the company’s corporate strategy while the company will remain committed to its brand reposition of “much more than mattress” by broadening the scope of its products offerings across the Vitafoam group.
According to him, the company has since commenced a new initiative to reduce operating costs and boost shareholder value.
Makanjuola who reviewed the current challenges facing manufacturing firms in Nigeria noted that Vitafoam was able to remain profitable due to the prudent approach towards management of human and material resources.
Besides, he said, the manufacturer of flexible ,reconstituted and rigid foam products has almost concluded arrangements to commence production of oil filters and allied motor spare parts through its newly established subsidiary,
“The foam business is operating in a very competitive environment. There are over 300 manufacturers. It is stressful to operate in the foam industry. As professionals, we have tried to keep administrative and financial cost under control. This prudent approach enabled us to generate profits and declared dividend of 25 kobo per share in an environment where many companies are closing business. We were able to achieve this feat despite the high cost of operation because of our careful management practice.
“We have almost concluded plan to commence production of oil filter in our new subsidiary. As for Vono Products, we shall keep the brand. We have gone to the Corporate Affairs Commission (CAC) to ensure that the brand is not taken away,” Makanjuola said.
Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi said that the decision to float a new subsidiary, Vitaparts Nigeria Limited was to provide products for motor spare parts which are in high demand.
“We shall enjoy pioneer status in the country as there is no manufacturer of these parts yet in the country,” Adeniyi said.
While Adeniyi who also assured the shareholders of higher value lamented the effects of forex scarcity and imported raw materials on the production of foams in Nigeria.
He however expressed optimism that Vitafoam would continue to operate optimally as measures have been put in place to strengthen the company’s operations with cost saving approach.
Many shareholders commended the company’s board and management for the good performance in spite of the tough business environment while some advised for more cost control measures. The Nation
