The board of Vitafoam Plc has proposed a dividend of 70 kobo per share as against 42 kobo paid in the preceding year, just as it announced plans to hold virtual Annual General Meeting.

The virtual meeting and 59th in the series, is scheduled on March 4.

The proposed dividend translates to a dividend yield of eight per cent at the company’s current share price on the Nigerian Stock Exchange, according to a statement issued by the company on Wednesday.

The notice of the meeting signed by the Company Secretary and Legal Adviser, Mr. Olalekan Sanni, said the company’s first virtual general meeting would focus on the reports of the directors, and audited financial statements for the year ended September 30, 2020 alongside with the reports of the auditors and the audit committee.

The company had earlier announced a good performance in the review period despite the impacts of COVID-19 pandemic on corporate earnings.

Its turnover rose by 5.2 per cent from N22.28bn to N23.44bn. Cost of sales dropped by 8.1 per cent from N13.52bn to N12.43bn. Gross profit thus rose by 25.7 per cent from N8.76bn to N11.01bn.

Non-core business income rose by 52 per cent from N491m to N745m. Interest expenses reduced by 11.4 per cent from N1.05bn to N930m. Profit Before Tax rose by 61.5 per cent from N3.5bn to N5.6bn.

The Group Managing Director, Mr Taiwo Adeniyi, attributed the performance of the company to innovation and expansion drive.

“Innovation is the drive. As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products,” he said.

He added that the company had the capacity to sustain the trajectory and would continue to reward its shareholders