Vitafoam Nigeria : NIG PLC.- QUARTER 5 - FINANCIAL STATEMENT FOR 2023

Vitafoam Nigeria Plc

Consolidated and Separate Financial Statements

for the year ended 30 September 2023

Vitafoam Nigeria Plc

Consolidated and Separate Financial Statements for the year ended 30 September, 2023

Contents

Corporate information	2
Directors' profile	3-7
Financial highlights	8
Report of the directors	9-35
Report of the Audit Committee	36
Statement of Directors responsibilities for the preparation and approval of the
Financial Statements	37
Certification of the financial statements	38
Independent auditors' report	39-42
Consolidated and Separate Statements of Profit or Loss and Other Comprehensive
Income	43
Consolidated and Separate Statements of Financial Position	44
Consolidated and Separate Statements of Changes in Equity	45-46
Consolidated and Separate Statements of Cash Flows	47
Significant accounting policies	48-66
Notes to the Consolidated and Separate Financial Statements	67-111
Value Added Statement	112-113
Five-Year Financial Summary	114-115

Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

Corporate Information
DIRECTORS:
Prof. (Mrs.) Rosemary Egonmwan	-	Chairman/Independent Non-Executive
Mr. Taiwo A. Adeniyi	-	Group Managing Director/CEO
Mr. Bamidele S. Owoade	-	Technical Director
Mr. Joseph I. Alegbesogie	-	Finance Director
Mr. Ola Ogunfeyitimi	-	Supply Chain Director (Appointed on 25th May 2023)
Mr. Gambo D. Dahiru	-	Commercial Director (Appointed on 25th May 2023)
Mr. Abdul A. Bello	-	Independent Non-Executive Director
Mr. Gerson P. Silva	-	Non- Executive Director
Mr. Achike C. Umunna	-	Non-Executive Director
Mr. Zakari M. Sada	-	Non-Executive Director
Mr. Ademola Bolarinde	-	Non-Executive Director (Appointed on 25th May 2023)
Dr. Bamidele Makanjuola	-	Non-Executive Director (Retired on 2nd March 2023)
Mrs. Adeola Adewakun	-	Non- Executive Director (Retired on 25th May 2023)
Company Secretary/Legal Adviser		Mr. Olalekan Sanni
Registrar:		Meristem Registrars & Probate Services Limited
		213, Herbert Macaulay Way
		Adekunle, Yaba
		Lagos.
		Website:www.meristemregistrars.com
		E-mail:[e-mail]
		Tel: [phone]
Auditors:		PricewaterhouseCoopers (PwC)
		Landmark Towers, Plot 5b, Water Corporation Road,
		Victoria Island, Lagos.
Registered Office:		140, Oba Akran Avenue
		Industrial Estate, Ikeja, Lagos, Nigeria
Website:		www.vitafoam.com.ng
Bankers:
		Globus Bank Limited
		Zenith Bank Plc
		First Bank of Nigeria Limited
		United Bank for Africa Plc
		Wema Bank Plc
		Jaiz Bank Plc
		Access Bank Plc
		Union Bank of Nigeria Plc.
		Greenwich Merchant Bank Limited
		Guaranty Trust Bank Limited
Company Registration Number		RC 3094

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

DIRECTORS' PROFILE

PROF. (MRS.) ROSEMARY IVIONWEN EGONMWAN (Independent Non-Executive)

Prof. Egonmwan holds a Bachelor of Science (B.Sc Hons) Degree with 2nd Class upper and a Masters of Science (M. Sc.) in Zoology from the University of Lagos. She also obtained a Doctorate Degree (D.Phil.) in Zoology from the prestigious University of Oxford, United Kingdom. Professor (Mrs.) Egonmwan is a distinguished scholar and an academician with over thirty (30) years experience. She was the Senior Environmental Adviser for Shell Nigeria Exploration and Production Company from 2009 - 2010 and served on the Management Board of Lagos University Teaching Hospital (LUTH) from 2012- 2016. Prof. (Mrs.) Egonmwan is on several boards and committees of the University of Lagos where she is currently a distinguished lecturer, including being a member of the Postgraduate School Board and University of Lagos Senate. She is a member of the Ecological Science of Nigeria, and British Ecological Society. Prof. (Mrs.) Egonmwan was appointed to the Board of the Company with effect from 1st October, 2017 and subsequently appointed as Chairman of the Board on the 1st of March 2023.

MR. TAIWO AYODELE ADENIYI (Executive)

Mr. Adeniyi holds a B.Sc Degree in Chemistry and M.sc (Pharmaceutical Chemistry) from the University of Lagos and a Masters Degree in Supply Engineering and Logistics from the University of Warwick, United Kingdom. He is also an Alumnus of Cranfield University School of Management. He won the prestigious Chairman's award of an outstanding employee in 2009 and the Nigerian National Productivity Order of Merit Award in 2010. He started his career in PharmaDeko Plc where he gained wide experience in operations management and products developments. He joined Vitafoam in 2007 as Logistics Manager and later became the Manufacturing Manager in 2010, a position he held until his appointment in July, 2012 as Executive Director and later Technical Director. Mr. Adeniyi was appointed Acting Managing Director on 22nd April, 2015 and became the substantive Managing Director on 4th June, 2015.

MR. OWOADE BAMIDELE SOLA (Executive)

Mr. Owoade holds a Bachelors degree in Mechanical Engineering and a Masters degree in Business Administration (MBA). He is a member of the National Institute of Marketing of Nigeria. He started his career in 1995 as management trainee in West African Batteries Limited (Exide) where he gained experience in operations management and quality assurance. He joined PharmaDeko Plc in 2000 as Plant Engineer and later became Factory Engineer and Head, Factory and Engineering. He joined Vitafoam PLC in 2008. Prior to his appointment to the board of Vitafoam on 18th December, 2018, Mr. Owoade was at various times the Factory Manager, Ikeja plant, National Sales Manager, Head of Sales at Vitafoam and Managing Director Vitablom Nigeria Limited (a subsidiary of Vitafoam).

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

MR. JOSEPH ALEGBESOGIE (Executive)

Mr. Alegbesogie joined the Vitafoam Group in February, 2013, as the Head of Finance and Administration at Vono Products PLC, a then subsidiary of Vitafoam Nig. Plc. Prior to joining Vitafoam, he had held leadership positions in various other organizations including Messrs. Giwa-Osagie, DFK & Co. (Chartered Accountants), as Audit Manager: 2005; Whassan Nigeria Ltd, a then subsidiary of Compass Group Plc, UK, as Financial Controller: 2012. He has over 23 years professional and practical experience in accounting, audit, taxation, and insolvency practice. He was redeployed from Vono Products Plc to Vitafoam Nigeria Plc in 2015, as Chief Accountant and later promoted to the position of Head, Finance and Accounts in 2017. Mr. Alegbesogie is an alumnus of Lagos Business School, a fellow of the Institute of Chartered Accountants of Nigeria and an Associate member of the Chartered Institute of Taxation of Nigeria. He holds a Bachelors degree in Management from the University of Port Harcourt. Mr. Alegbesogie was appointed to the Board of the company on 18th December, 2018.

MR. DAHIRU GAMBO (Executive)

Mr. Dahiru Gambo holds a Bachelor's Degree in Applied Chemistry with over 20 years' experience in sales and customer management. Prior to this appointment, he was the Head of Sales of the Company. Mr. Gambo is a Non-Executive Director in Vono Furniture Products Limited, a subsidiary of Vitafoam. Mr. Gambo started his career as Sales Supervisor in Neimeith International Pharmaceuticals Plc where he gained experience in Sales and Marketing. He joined Vitafoam Nigeria Plc in 2006. He was at various times Regional Sales Manager- Lagos Region, South West & Lagos Region and North Central Region. He was promoted to the post of National Sales Manager and later Head of Sales.

Mr. Gambo was appointed to the Board of the Company on the 25th of May 2023.

MR. OLAOLUWA OGUNFEYITIMI (Executive)

Mr. Ogunfeyitimi is a trained Chemical Engineer with good knowledge of Business & Project Management with dedicated interest in process industry and factory management. He holds a Master's Degree in Chemical Engineering (M.Eng) from Nnamdi Azikwe University, Awka, Nigeria and a Bachelor's Degree in Chemical Engineering from Ladoke Akintola University of Technology. He is a registered Engineer with the Council for Registration of Engineering in Nigeria (COREN), former Council Member with Sierra-Leone Institution of Engineers, Corporate Member, Nigeria Society of Engineers, Corporate Member, Nigeria Society of Chemical Engineers, Member, Institute of Chartered Chemist of Nigeria and Council Member, Manufacturers Association of Nigeria (Ikeja Branch).

Mr. Ogunfeyitimi started his career with Winco Foam in 2004 as Production Manager from where he joined Vitafoam Nigeria Plc in 2008 as Production Manager in Jos Factory; He has held the position of Regional Sales Manager- North East Central Region, MD/CEO of Vitafoam Sierra-Leone Limited (a subsidiary of Vitafoam Nigeria Plc) and Head of Technical.

Mr. Ogunfeyitimi was appointed to the Board of the Company on the 25th of May 2023.

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

Mr. GERSON PARREIRA SILVA (Non-Executive)

Mr. Silva is a Chemical Scientist with competency and specialization in Polyurethane (PU) Systems, a core production component of Vitafoam, and Vitapur (a sandwich panels and chemical systems subsidiary of Vitafoam). During his brilliant career, Mr. Silva has worked in several frontline chemical systems organizations across the globe including Dow Chemicals (one of the leading chemical companies in the world) for 18 years as a chemical scientist and analyst. Having acquired the know-how of chemical system application at DOW, Mr. Silva in partnership with like minds, proceeded to establish PURCOM, one of the largest Chemical System Houses in South America. PURCOM is an internationally acclaimed producer of various PU applications and systems. Mr. Silva is a widely travelled Consultant on PU Chemical Systems. His unique and widely acclaimed experience of Chemical Systems applications will be of immeasurable value to the operations of Vitafoam and some of its subsidiaries with exciting prospects of enhanced technical proficiency and competitiveness. Mr. Silva, a Brazilian was appointed to the Board of the Company with effect from 1st October, 2017.

MR. ACHIKE CHARLES UMUNNA (Non-Executive)

Mr. Achike Charles Umunna obtained a Bachelors Degree in Law (LL.B) from the University of Nigeria, Nsukka in 1982, graduated from the Nigerian Law School in 1983 and obtained a Masters Degree (LL.M) from the University of Lagos in 1985. A Knight of the Catholic Church, Mr. Umunna is a fellow of the Nigerian Institute of Management Consultants (NIMC) and a fellow of the Chartered Institute of Arbitration (United Kingdom). He also holds a certificate in International Arbitration and Investment Law from the Roma Tre University, Rome.

Mr. Umunna has been actively engaged in legal practice for over 35 years with experience in both the public and the private sectors. He started his legal career from the then National Assembly, Tafawa Balewa Square, Lagos where he was the Secretary to the Rules and Business Committee of the House of Representatives and later as legal officer with the Ministry of Defence, Defence Headquarters, Lagos. He went into private practice with the law firm of Chuka Okoli and Associates before establishing the firm of Achike Umunna and Associates in 1986. Amongst other fields of practice, Mr. Umunna has acquired expertise in the field of corporate law, maritime, petroleum, international trade laws and practices having worked as legal consultant in China, Bulgaria, Romania, United Kingdom, USA, Germany and Japan. He is a member of the Lagos Chamber of Commerce and Industry. He was appointed to the Board of the company with effect from 19th December, 2019.

MR. ABDUL AKHOR BELLO (Independent Non-Executive)

Mr. Abdul Akhor Bello retired from UAC of Nigeria in 2019 after 30 years in service during which he held various senior management position such as Group Chief Executive Officer; Group Executive Director/Chief Financial Officer; Managing Director, UPDC Plc; Managing Director, CAP Plc and Finance Director/Company Secretary,

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

CAP

Plc.

He brings to Vitafoam, executive and board service experience acquired across a range of businesses including Manufacturing, Financial Services, Pension Fund Administration, Real Estate, Logistics and Quick Service Restaurants sectors.

Mr. Abdul Akhor Bello has served on the Governing Council of the Nigeria Employers Consultative Association, Nigeria-British Chamber of Commerce and the Nigerian Institute of Management. A Fellow of the Institute of Chartered Accountants of Nigeria, Mr. Bello attended Yaba College of Technology, Lagos. He is an alumnus of

Oxford University's Advance Management & Leadership Program and has undertaken various local and

international development courses.

He was appointed to the Board of the company with effect from 4th of March 2021.

MR. ZAKARI MOHAMMED SADA (Non-Executive)

Mr. Zakari holds a Bachelors of Science (B.Sc. Hons) Degree in Accounting with First Class Honours from the prestigious Ahmadu Bello University, Zaria, Kaduna State. He began his career in the public service as an Accountant with the Kaduna State Health Management Board. He later ventured into auditing & consulting and then into banking. His banking career spanned 17 years at Habib Nigeria Bank Limited where he occupied several Senior Management positions and later rose to the position of Executive Director acquiring experience in financial and business advisory services. Mr. Zakari is the former Managing Director/CEO of Penman Pensions Limited and a former Commissioner, North West Zone, Fiscal Responsibility Commission.

His background comprises accounting, credit analysis and control, banking operations, administration, corporate planning, strategy and regulatory experience. He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Fellow, Association of Certified Chartered Accountants (FCCA), Fellow Chartered Institute of Taxation of Nigeria (FCTI), and Fellow Chartered Institute of Pensions of Nigeria.

Mr. Zakari is an alumnus of the Harvard Business School, Boston, where he attended the Management Development Program.

He was appointed to the board of the company with effect from 16th November, 2022.

MR. ADEMOLA BOLARINDE (Non-Executive)

Mr. Bolarinde is a graduate with degrees in Economics and Social Policy and Administration. He has knowledge in extensive business development, project start-up, HR and administration, IT and team building skills. He is a graduate of the London School of Economics, London and the University of Nottingham. Mr. Bolarinde has undergone Management and Leadership Program and has undertaken various local and international development courses.

He was appointed to the Board of the Company with effect from 26th of May 2023.

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

DR. BAMIDELE OSUOLALE MAKANJUOLA (Retired on 2nd March, 2023) (Non-Executive)

Dr. Makanjuola is a first class Chemical Engineering graduate of University of Ife (now Obafemi Awolowo University), Ile- Ife. He holds a Doctor of Philosophy Degree in Chemical Engineering and Economics from the Loughborough University of Technology, United Kingdom. He is a member of the Polymer Institute of Nigeria and Fellow of the Nigerian Society of Engineers. He became the Executive Director in Charge of Corporate Planning and Development in December 2001 and was appointed Managing Director on 1st April, 2006, a position he held until his retirement on 30th September, 2012. He was appointed as Board Chairman on the 1st of October 2012, a position he held until his retirement on the 2nd of March 2023 after years of meritorious service to the company.

MRS. ADEOLA ADEWAKUN (Retired on 25th May, 2023) (Non-Executive)

Mrs. Adewakun holds a Masters of Pharmacy Degree from the University of Portsmouth, Hampshire, United Kingdom. She is a member of the Royal Pharmaceutical Society of Great Britain and the General Pharmaceutical Council of Great Britain. A United Kingdom registered Pharmacist, Mrs. Adewakun has held various management positions in different Pharmaceutical companies in the United Kingdom. She was appointed to the Board of the company with effect from 23rd May, 2013.

Mrs. Adewakun retired from the Board on the 25th of May 2023 after a successful completion of her tenure.

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

FINANCIAL HIGHLIGHTS

			Increase/
GROUP	2023	2022	(decrease)
	N'000	N'000
Revenue	52,986,466	46,310,015	14%
Profit before income tax	6,004,112	7,214,360	-17%
Profit for the year	4,373,957	4,522,278	-3%
Proposed dividend	2,445,080	2,368,915	3%
Share capital	625,422	625,422	0%
Total Equity	17,406,078	15,668,518	11%

			Increase/
COMPANY	2023	2022	(decrease)
	N'000	N'000
Revenue	47,723,375	42,128,595	13%
Profit before income tax	4,929,600	6,748,246	-27%
Profit for the year	3,418,992	4,411,111	-22%
Proposed dividend	1,951,317	1,901,283	3%
Share capital	625,422	625,422	0%
Total Equity	16,178,032	15,013,073	8%
COMPANY
			Increase/
Data per 50k share	2023	2022	(decrease)
Basic Earnings (=N=)	2.73	3.53	-22.66%
Declared dividend (=N=)	1.56	1.52	3%
Net asset/share (=N=)	1,293	1,200	7.8%
			Increase/
Stock Exchange Information	2023	2022	(decrease)
Stock exchange quotation at 30 September (=N=)	22.25	20.95	6%
Number of shares issued (000)	1,250,844	1,250,844	0%
Market capitalisation (N'000)	27,831,279	26,205,182	6%

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Vitafoam Nigeria Plc.

Consolidated and Separate Financial Statements for the year ended 30 September 2023

REPORT OF THE DIRECTORS

The Board of Directors of Vitafoam Nigeria PLC is pleased to present the Annual Report together with the group and company's audited financial Statements for the year ended 30th September 2023.

1. OUR BUSINESS

The company and her subsidiaries (Vitapur Nigeria Limited, Vitablom Nigeria Limited, Vitavisco Nigeria Limited and Vitafoam Sierra Leone Limited) engage in the manufacture, marketing and distribution of flexible and rigid foam, fibre products, and textile products in Nigeria and across other West African countries. Other additional subsidiaries are Vono Furniture Products Limited and Vitaparts Nigeria Limited which manufacture quality furniture products and vehicle oil filters (spin-on and cartridge). The vast array of products from the group are tastefully designed and manufactured to meet consumers' needs in real estates, health institutions, hotels, oil and gas, automobile and agricultural sectors. Technical products (especially foam and fibre) which are usually manufactured to customized specifications are also supplied as semi-finished products to various industrial groups.

The company specializes in enhancing quality lifestyle and offering comfort to our esteemed customers with a rich product mix that consists of foam, spring and orthopedic mattresses, pillows, cushions, complete bed sets and various ancillary items such as protectors and bed linen. Products on offer are affordable and available to various segments of society. The company has processes that integrate products' research and development, manufacturing, testing and inspection, quality assurance and marketing. The company's goal is to remain the most professional, reliable and high-quality comfort solutions provider.

The following are the major products offerings:

a) Inner Core Spring Mattresses

Inner core spring mattresses are designed and produced using the latest technology offered by our Infinity spring machine. The continuity of the coils makes the product more rigid, firmer and lighter than the older versions. This technology has made it possible to offer exquisite premium products of improved reliability and aesthetics through the incorporation of regular flexible foam, visco-elastic foam, steel, coil, felt, chip foam, etc. The various branded variants of these products are Vita Spring Firm, Vita Spring Flex and Vita Divan Bed.

b) Regular Flexible Foams

The segmentation of our products (Early days, Lifestyle, Premium Health and Leisure) has made it possible for consumers across different age groups and status to benefit from the array of good quality products on offer.

The Early Days segment offers products that are of great interest to nursing mothers such as baby mat, baby cot mattress, baby pillow, baby feeder, baby solid chair and baby back support, and many others.

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