Vitafoam Nigeria Grows Profit by 126.5% in Q4’19
UMORU ABDULKADIR
Vitafoam Nigeria has announced 126.51 per cent increase in the Group’s Profit After Tax (PAT)
The foam manufacturing company announced this in its fourth quarter (Q4) 2019 Financial Statements filed to the Nigerian Stock Exchange (NSE) on Monday, January 2020.
The Financial Statements showed that it grew PAT in the three months period ended December 2019 to N819.7 million, up from N361.9 million achieved in the corresponding period of 2018, representing 126.5 per cent rise in profit, despite recording 6.3 per cent decline in its revenues for the period.
Similarly, its Profit Before Tax (PBT) surged to N1.18 billion in the just-ended quarter of 2019, when compared with N513.1 million in the same time, an indication of 130 per cent growth in PBT for the period.
According to the financial statements, the Group’s Revenue contracted by 6.3 per cent to N5.89 billion in Q4 2019 when compared with N6.39 billion attained in the same period of 2019.
Despite a 47.3 per cent rise in the Company’s Gross Profit from N1.73 billion in December 2018 to N2.55 billion in Q4 2019 due to a reduction its Cost of Sales by 26.31 per cent, the surge in the Administrative Charges and Distribution Cost by 14.6 per cent to N1.21 billion from the preceding period N1.06 billion, reduced the Profit margin considerably for the period in focus.
Another major factor that affected the Company’s profit margin was the rise in taxation by 138.1 per cent, from N151.23 million in Q4 2018 to N360.12 million for the just-ended fourth quarter period of 2019.
Equally, its Total Comprehensive Income, indicating income from all sources for the period leapt from N373.12 million to N837.9 million in Q4 2019, representing 124.56 appreciation.
Due to its effective and efficient sales method, it was able to drive down its Cost of Sales considerably by 26.31 per cent from N4.655 billion in Q4 2018 to N3.431 billion in the fourth quarter of 2019, while also cutting its Finance Cost by 20.5 per cent to N182.67 million when compared with N229.71 million recorded in the same period of 2018.
Vitafoam however, recorded, a much higher per cent growth its total liabilities at 32.61 per cent when compared with 24.58 per cent growth in total assets for the period in focus. Specifically, while its total assets appreciated from N13.82 billion in 2018 to N17.22 billion in Q4 2019, representing 24.58 per cent appreciation, its total liabilities for the same period jumped to N10.41 billion, up from N7.85 billion, representing 32.61 per cent increase in the Company’s liabilities.
Its Earnings Per Share (EPS) for the period under review rose from 33 kobo in the previous period to 62 kobo in Q4 2019, an indication that the earnings by shareholders for each unit of ordinary shares held advanced by 87.88 per cent during the time in focus.
Comments are closed.