Vono Product plc, a furniture and foam manufacturer, ended 2013 with growth at the top-line level buoyed by recovery in consumer spending while reduced costs helped the company revert to profitability.
For the year ended December 2013, the Nigeria furniture maker’s revenue rose by 60 percent to N841.41 million from N525.87 million in the earlier period of 2012. The company posted a profit before tax (PBT) of N1.52 million in the review period from a loss position of N86.86 million in the earlier period of 2012.
These impressive financial results show the company is unrelentingly tapping into the growing Nigeria population and rising middle-class with copious demand for consumable goods.
According to the Africa Development Bank, there are over 350 million in the middle-class in Africa, which means that the Nigeria furniture maker has tremendous opportunities to spread its strategic tentacles beyond Nigeria and across Africa.
Inputs costs were down through savvy management of prime cost as cost-of-sales margin reduced to 72.66 percent in the review period from 76.90 percent in 2012, while gross margin jumped to 27.33 percent in 2013, as against 23.08 percent in 2012.
Operating expenses increased by 11.63 percent to N215.29 million in the review period as against N192.86 billion in 2012, while operating expense ratio reduced to 25.58 percent in 2013, from 36.67 percent in 2012.
With the recent privatisation of the country’s power sector by the Nigeria government with a view to boosting efficiency of manufacturing sector will spur growth of consumer goods companies such as Vono Product.
Vono Product is involved in the manufacturing of mattresses and bedsprings. The company provides metal furniture, beds, interior spring mattresses, foam and foam products, vehicle seats, and rests chairs. The company was listed on the Exchange on April 9, 1974. It also has shareholders fund of N832.4 million at the end of 2013, with shareholdings 563.65 million.
The company’s share price closed at N1.44 – July 14, 2014, on the floor of the Nigerian Stock Exchange, with market capitalisation of N811.66 million.