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  • Business - Companies
  • Updated: Jul 30, 2020

No Sleep For Shareholders As Vitafoam’s Revenue, Profit Declines

No Sleep For Shareholders As Vitafoam’s Revenue, Profit De

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Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitione...

Shareholders of Vitafoam would lose sleep over the financials of the company in the second quarter of this year, as Vitaform couldn't generate as revenue as it generated in the corresponding period of 2019. Vitaform's gross profit was also the same story as it nosedived during the same period.

According to the unaudited financial statements of Vitafoam for Q2 this year, the company generated N5 billion revenue, falling short of the N5.9 billion it generated in last year Q2. The company was, however, able to cut its cost of sales to N3 billion in the second quarter of this year.

[READ ALSO: Seplat CEO, Austin Avuru, To Exit Amidst Significant Decline In Revenue, Profit]

Last year second quarter, Vitaform's cost of production was N3.7 billion. This reduction in cost of sales, however, couldn't stop Vitaform's gross profit from declining to N1.9 billion in Q2 2020, failing to surpass the N2.1 billion it generated in the corresponding period of 2019.

Meanwhile, Operating Profit rose beyond the N740.9 million generated in Q2 last year, as Vitaform reported in its unaudited financial statement that it recorded N862.7 million. Also, Profit before tax increased to N669.1 million in Q2 this year, surpassing the N471.7 million it recorded in the corresponding period of last year.

[READ ALSO: Seplat Appoints Diamond Bank Former CEO, Emeka Onwuka, As CFO]

Also, Profit for the period grew to N475 million in the second quarter of this year, generating more than the N338.2 million it recorded in the corresponding period of 2019. Note that Vitaform has several subsidiaries' such as; Vitafoam Sierra Leone Limited, Vitapur Nigeria Limited, Vitablom Nigeria Limited, Vitavisco Nigeria Limited, Vono Furniture Products Limited. The list of subsidiaries also includes Vitagreen Nigeria Limited, Vitaparts Nigeria Limited.

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