Vitafoam records N280m profit in three months- Vitafoam Nigeria Plc recorded marginal increases in sales and profitability in the first quarter as the foam-manufacturing company continued to struggled with high interest expense. Interim report and accounts of Vitafoam for the first quarter ended December 31, 2013 showed 1.6 per cent increase in sales while profit before tax rose slightly by 8.3 per cent. Profit after tax also inched up by 1.99 per cent. Turnover stood at N4.38 billion in December 2013 as against N4.31 billion recorded in comparable period of 2012. Profit before tax rose from N259.02 million to N280.47 million while profit after tax inched up to N180.43 million compared with N176.90 million in corresponding period of 2012. The first quarter report showed a familiar performance trend that has dogged the leading foam-manufacturing group in recent years, with sluggish sales and interest-suppressed bottom-line. Audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2013 had indicated that sales rose by 12.8 per cent but pre and post tax profits dropped by 22.5 per cent and 18.2 per cent respectively. The largest growth on the profit and loss accounts remains finance expenses, which rose by about 40 per cent. With basic earnings per share dropping from 61 kobo to 50 kobo, the retention of the 30 kobo dividend payout cut dividend cover from 2.03 times to 1.67 times. This downtrend is also evident in the underlying returns and profitability of the company.
Posted on: Thu, 06 Mar 2014 11:19:00 +0000
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