Foam manufacturing giant, Vitafoam Nigeria has announced a 127% rise in its after-tax profit for Q4 2019.
This and other details of Vitafoam’s financials are published in its Consolidated and Separate Financial Statements for 3 months ended 31 December, 2019, posted on the website of the Nigerian Stock Exchange (NSE) on Saturday.
The firm’s Turnover shrank by 6.3%, depreciating from the N6.389 billion posted at Q4 2018 to the N5.894 billion recorded in the corresponding period last year.
Profit Before Tax (PBT) however leapt from N513.126 million at Q4 2018 to N1.180 billion in the same period of 2019, representing 130% growth.
Profit After Tax (PAT) stood at N819.674 million at Q4 2019, up from the N361.872 posted at Q4 2018.
Despite the fall in its earnings, Vitafoam was able to achieve growth in its profit owing to a number of factors.
It cut its Cost of Sales significantly by 36.7% from N4.655 billion at Q4 2018 to N3.431 billion at the corresponding period of 2019.
Similarly, it reduced its Finance Costs (cost, interest and other charges incurred in the borrowing of money to build or purchase assets) by 20.1% from N229.707 at Q4 2018 to NI182.671 million at Q4 2019.
Earnings Per Share (EPS) surged by 88% from 33k at Q4 2018 to 62k at Q4 2019.
Vitafoam closed trade on the floor of the NSE on Friday at N5 per share
Earnings Per Share is the profit that each unit of a company’s ordinary shares recorded during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.