Nigerian food maker, Nascon Allied Industries saw a rise in profit in the nine-month period of 2020 thanks a huge decline in its cost of sales.
The food maker’s profit surged 12 percent to N2.28 billion in the period compared to N2.02 billion in the same period of the previous year
Nascon saw its revenue rise by 3.8 percent to a record high of N21.8 billion in 9M’20 from N21 billion a year ago.
The company’s cost of sales dropped to N15.8 billion, down by 18.3 percent from N12.9 billion reported in the same period last year.
As a result, gross profit surged 74.5 percent in the first nine months of 2020 to N8.9 billion against N5.1 billion in the same period last year.
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This means that for every N100 revenue, Nascon made N41 compared to N24.4 last year, indicative of greater cost efficiency.borrowing cost jumped 12 percent to N209.6 million while investment income plunged 59 percent to N35.9 million in the period under review.
The food maker spent more on distribution and administrative expense as they both rose 164 percent and 9 percent respectively.
Nascon made N12.8 million from the sale of scraps and insurance claims, up 28 percent from N10 million in the first nine months of 2019.
Operating profit for the consumer goods firm rose about 21 percent to N3.64 billion from N3 billion in the same period a year ago.
Pre-tax profit settled at N2.23 billion, up 4 percent from N2.13 billion.
Earning per share rose 12 percent to N115 in the first nine months of 2020 from N102 a year ago.
Nascon share price closed 0.72 percent higher at N14.05, Thursday.
For the third quarter of 2020 (June to September),
Nascon saw its profit jump by 40 percent to N801.9 million from N572 million a year ago.
Revenue plunged 8 percent during the period to N7.3 billion from N8 billion the previous year.
Cost of sales was down 34 percent to N4.2 billion in Q3’20 from N6.4 billion in Q3’19.
This drove gross profit up by 93 percent to N3.1 in Q3’20 from N1.6 billion in the same period in the previous year.
The company cut borrowing cost by 64.4 percent to N43.4 million in Q3’20 from N122 million a year ago.
Nascon Allied Industries Plc provides food products such as salt, vegetable oil, tomato paste, and seasoning products.
