Vitafoam Nigeria Plc has reported a substantial revenue increase of 56% for the third quarter of 2024, reaching N82.58 billion, up from N52.99 billion in the same period last year. This impressive growth comes amid a challenging business landscape marked by high operating costs, foreign exchange constraints, and weakened consumer purchasing power.
Despite this revenue surge, the company’s profit before tax dropped significantly from N6.01 billion to N1.525 billion due to a rise in the cost of sales, which climbed from N35.04 billion to N52.54 billion, driven by high forex expenses and increased operational costs.
In a statement to the Nigerian Exchange Limited, Vitafoam’s Group Managing Director and CEO, Taiwo Adeniyi, expressed optimism about the company’s future, emphasizing its resilience and proactive strategies. He highlighted the company’s focus on operational efficiency and a diversified product portfolio, which are expected to drive growth and improve competitiveness. Adeniyi noted, “Vitafoam has always navigated challenging environments before and emerged stronger,” adding that the firm is committed to delivering sustainable value to its shareholders, customers, and stakeholders.
With over 95% of sales occurring within Nigeria, Vitafoam remains a key player in the domestic market through its six active subsidiaries: Vitafoam Sierra Leone Ltd., Vitapur Nigeria Ltd., Vitablom Nigeria Ltd., Vitavisco Nigeria Ltd., Vono Furniture Products Ltd., and Vitaparts Nigeria Ltd. These subsidiaries help expand the company’s reach across various sectors, enhancing its position in the Nigerian market.