Nascon Allied Industries Plc has reported a 222 percent year-on-year growth in profit after tax to N15.6 billion for the six months ended June 30, 2025, compared to N4.8 billion posted in the same period of 2024.
According to the company’s second-quarter financial statement, the growth was driven by strong revenue performance, improved cost management, and higher investment income.
Nascon’s revenue surged by 55 percent to N78.2 billion in H1 2025, up from N50.4 billion in the prior-year period. This growth was largely attributed to higher sales volume across its core salt and seasoning products, as well as pricing adjustments reflecting inflationary pressures.
Gross profit jumped by 70 percent to N37.4 billion, benefiting from operating leverage despite a 43 percent increase in cost of sales.
Distribution and administrative expenses rose moderately by 13 percent to N15.6 billion. The increase was driven by higher delivery costs, branding activities, and personnel expenses.
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However, cost control measures helped contain the operating expense-to-revenue ratio, allowing operating profit to soar to N21.3 billion, nearly tripling from N7.2 billion in the prior year.
Finance income rose sharply to N2.4 billion, driven by interest on short-term deposits, while finance costs declined by 34 percent to N413 million due to lower borrowings and reduced interest on lease liabilities. Consequently, net finance income stood at N1.95 billion compared to N33 million in H1 2024.
The company’s total assets stood at N111.6 billion, up 42 percent from N78.5 billion at the end of 2024, driven by a sharp increase in cash holdings and receivables. Cash and cash equivalents more than doubled to N36.6 billion from N12.2 billion in June 2024, supported by robust operating cash flows of N17.9 billion, compared to a negative cash flow of N10 billion a year ago.
Inventories remained stable at N18.5 billion, while trade and other receivables climbed to N38.8 billion, up from N17.2 billion at year-end 2024, indicating stronger sales activity and possibly extended credit to customers.
Earnings per share also more than tripled to 1,154 kobo from 359 kobo in H1 2024, reflecting enhanced shareholder value.
As of July 30th, the company’s share price stood at N99.9, a 162 percent increase from the N38 reported in January.
