Vitafoam Nigeria's Profit Slumps Amid Naira Devaluation, Revenue Rises 56

Vitafoams revenue surged 56 in 2024, driven by increased sales of core foam products, reflecting resilient demand despite economic challenges.

Profit plummeted by 89, as rising finance costs and a N12.7 billion forex loss from the nairas devaluation took a heavy toll.

Vitafoams Sierra Leone factory supports its ECOWAS expansion, with growing market acceptance in Guinea and Liberia.

Vitafoam Nigeria Plc, a leading manufacturer of rigid and flexible foam products, reported mixed financial results for its fiscal year ended September 30, 2024 , as the naira's devaluation eroded profits despite robust revenue growth.

The company, partly owned by Nigerian polyurethane magnate Samuel Bolarinde, struggled with rising finance costs and foreign exchange losses, underscoring the challenges faced by industrial firms operating in Nigeria's volatile economic environment.

Vitafoams revenue surged 56 percent, climbing from N52.9 billion 34.3 million in 2023 to N82.64 billion 53.6 million in 2024. This growth was primarily driven by increased sales of its core products, including mattresses, pillows, and other foam products, reflecting resilient demand despite macroeconomic headwinds.

However, the companys profit plunged by 89 percent, falling from N4.37 billion 2.83 million to N952.19 million 618,000. This sharp decline was attributed to surging finance costs, which reached N7.13 billion, and a staggering foreign exchange loss of N12.7 billion 8.2 million, stemming from the nairas devaluation.

Despite the significant profit slump, Vitafoams board of directors has recommended a dividend of N1.375 billion 895,000, equivalent to N1.05 0.00068 per share, for approval at the companys upcoming Annual General Meeting.