Vitafoam Explains New Focus to Improve Operations

The management of Vitafoam Nigeria Plc has unfolded new strategic focus for optimum operation under recession and assured the shareholdersof payment of dividend for the 2016 financial year.

Besides, the frontline manufacturer of mattresses and a range of home comfort materials has pledged to sustain its corporate culture of innovative products at competitive prices for enhanced shareholder value.

In his review of the 2016 operations of the manufacturing sector in Nigeria, Group Managing Director and Chief Executive Officer of Vitafoam, Mr. Taiwo Adeniyi explained that it was a very tough period, saying the most difficult problem was how to make realistic business decision in the face of continuous uncertainty in view of insecurity, exchange rate, interest rate, devaluation of the Naira and insecurity of lives and property.

However, Adeniyi, who expressed optimism that his company’s board and management had learnt how to operate profitably under recession assured the shareholders of dividend after the company’s annual general meeting (AGM) early this year. He therefore, commended the shareholders for their support and understanding in the year under review.

“Our shareholders are our pride. We have an obligation to work very hard to ensure that they are rewarded. We have consistently paid dividend. We shall pay dividend for 2016 despite the recession. We have always sustained our culture of shareholder value and we shall continue to appreciate our shareholders’ advice on how to move the company forward. It has been difficult to plan under recession. But we have mastered the terrain. We can now do better planning. Our strategic focus is now to plan by the day. We plan as they come. At least we can now forecast some variables. This is helping us,” Adeniyi said.

Speaking on the manufacturing sector, Adeniyi noted that companies that import most of their raw materials had challenges with the exchange and availability of Dollars due to improper alignment of fiscal and monetary policies.
According to him, the federal government’s policy of preferential allocation of Dollars to genuine manufacturers did not achieve desired result because it is cashed backed. He explained that the manufactures could not take advantage of the special window for forex because many of them could not back their high demand with cash while the banks who are supposed to lend money had liquidity problem.

Speaking on Vitafoam’s donation of some of the company’s products to the parents of the new babies of the year and the hospital at Lagos Island Maternity Centre at the weekend, he decried the deplorable condition of our hospitals and urged the federal government to invest more in the Health Care sector to reduce frequent request for Dollars for treatment oversees.

“We have always identified with the children as they use most of our products.They are major part of our stakeholders. This means that every family is our customer as we exist to meet their needs at all times.We have commenced this unique aspect of Corporate Social Responsibilities (CSR) over ten years ago and it has been of great delight that we are giving back to the society.” The hospital’s Medical Director, Dr. Imosemi Donald commended the company for the corporate support.