DREAM BEYOND MATTRESSES

Vitafoam is a metaphor for corporate foresight, reckons

         Sola Oni

Quoted companies are under pressure to meet the great expectation of their shareholders and other stakeholders in an operating environment characterized by high production cost and low consumers’ purchasing power. This is in addition to compliance with the highest standard of corporate governance and other post listing requirements of Nigerian Exchange Limited (NGX).  

Every competitive business aims at solving a problem. This is what separates a strong brand from the crowd.  Against many permutations, Vitafoam Nigeria PLC did not roll out drums when the powerhouse of reconstituted rigid foams and other household materials clocked 60 last year. Rather, the Company celebrated its top performing distributors with prizes including trucks for enhancing its ability to sustain shareholder value over the years .  

In the last three years, Vitafoam Nigeria PLC has sustained growth in revenue, cost-effectiveness, and total assets that have translated into profit growth and robust dividend payout to shareholders. From 2020 to 2022, the manufacturing giant’s profit before tax rose by  28 per cent to N7.21 billion in 2022 from N5.65 billion in 2020. Its net profit stood at N4.52 billion in 2022 from N4.11 billion in 2020. 

The company doled out N1.9 billion, which translated into a dividend of N1.52 per Ordinary Share of 50 kobo each for its 2022 financial performance. It is one of the topmost tax payers to the government over the years. Its rewarding dividend policy may have endeared it to investors that hold tightly to its shares. 

The Group Managing Director, Mr Taiwo Adeniyi is the brand personality and he says: ” We delivered the dream of Vitafoam beyond mattresses. Our diversification policy is strategically targeted at turning our competitors to our customers. The birth of five subsidiaries with expansion to Sierra Leone in the last 10 years has delivered that aspiration and keeps adding value to the business in no small measure.”

As a key player in the manufacturing space in Nigeria, the  Company is not without its headwinds. But in pursuit of problem – solving for humanity, it established Vitablom Nigeria Limited, a subsidiary that focuses highly siliconized fiber products. It produced an array of top quality pillows, bedsheets and duvets for everyone,  including mother and child. The company is a major player in the soft furnishing, beddings, flat sheet fibre and scouring sponge market in Nigeria.

Vitaparts Nigeria Limited is the pioneer manufacturer of oil filters for automobiles in Nigeria. Vitaparts currently produces two variants of oil-filters for automobiles: Spin-on filter and Cartridge filter.

Vitapur Nigeria Limited was established to address problems associated with insulation. It produces Rigid Polyurethane foam insulation products, fabricates, and installs various polyurethane rigid foam products, including Prefabricated buildings, sandwich panels, insulation boards, chemicals systems, and pre-cut pipe sections.

Vitavisco Nigeria Limited deploys polyurethane for unique lifestyle products and services which offers comfort in homes, offices and industries. The company has created a number of products which at the moment borders on use of molded viscoelastic and high resilience range of polyurethane foam.

Vono furniture Products limited is a fully owned subsidiary of Vitafoam Nigeria Plc, positioned to provide furniture products for the hospitality, offices, homes and institutions.

 A keen observer was  quick to say that the  sustained growth and good performance from the company  had always been predicated on customer -centric operations, focused on quality from the view point of our customers. The company has invested heavily  in the state-of-the-art technology and research and development,  the driving forces  of its  key success factors. “ Vitafoam has invested in young talents that today, over 80% of the workforce are below the age of 50. We have a heritage quality because we have mastered the art and the technology.

” The company has been consistently keeping to its core values, which are : quality  service, sustainable action, integrity, respect for others and culture. These values have in no small ways helped Vitafoam Nigeria plc to weather the storms and turbulence over the years. Our predecessors laid a very solid foundation upon which the present management has been building upon and of which the future management shall adhere to. Also, the company has a very dedicated and committed board, management and staff who have continued to contribute their quotas towards the success story of Vitafoam. At Vitafoam, we are 100% committed to our brand promise and customer satisfaction.” , said Adeniyi. This is a major lesson for any  brand that wants to be relevant at all times.

Market watchers are apprehensive that manufacturers in Nigeria may face harder times as the current operating environment will further shoot up production costs and associated expenses while consumer demand may thin out. 

But Adeniyi  seems unperturbed: ” We intend to engage more with our customers and continue to develop capacities of our workforce to embrace smart sourcing and smart operations. Also, the company, being heavily dependent on foreign exchange for its raw materials and with the ever-increasing forex challenges, is working tirelessly towards investing in export-oriented business(s), this would be a more sustainable strategy to protect the future of the core business”.

Oni, an integrated Communications Strategist, Chartered Stockbroker and Commodities Trader, is the Chief Executive Officer, Sofunix Investment and Communications