NASCON Allied Industries Plc started the year on a stronger note, achieving a significant turnaround in its three-month earnings with a 533 percent increase in after-tax profit. This impressive growth was driven by strategic cost optimisation, revenue expansion, and a decline in foreign exchange losses.
According to its unaudited financial statements for the period ended March 31, 2025, after-tax profit rose to N7.6 billion from N1.2 billion recorded in the same quarter last year.
Despite economic uncertainties, the Dangote subsidiary, specialising in edible salt and seasoning cubes production, reinforced investors’ confidence with a 477.8 percent surge in operating profit to N10.4 billion from N1.8 billion.
Its revenue grew by 77.5 percent to N41.9 billion in Q1 2025 from N23.6 billion, while cost of sales saw a 91.2 percent increase to N23.9 billion from N12.5 billion.
The company’s revenue was buoyed by an increase in revenue generated from its northern segment. Earnings in the region soared 86 percent to N32.3 billion, up from N17.4 billion, contributing more than 77 percent of the company’s total revenue which is a clear indicator of its robust market presence.
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However, rising costs remain a concern. Raw material expenses, which account for over 87 percent of total cost of sales, saw a notable increase. Coupled with high delivery costs, this continues to exert pressure on operating expenses, especially as input price volatility lingers.
Despite these challenges, Nascon found relief in a sharp decline in foreign exchange losses, which dropped to N55.4 million from N3.06 billion. This provided much-needed support to its bottom line, helping offset inflationary pressures.
Further analysis showed that Gross profit rose by 60.4 percent to N17.9 billion from N11.2 billion, while net finance income by 1,359.4 percent to N1.09 billion from N408.7 million.
The company’s balance sheet grew 7.09 percent to N90.8 billion, with current assets making up over 82 percent, reflecting strong liquidity. Equity climbed 76.4 percent to N50.6 billion, accounting for 55.7 percent of total assets.
Nascon also significantly reduced its borrowings, cutting debt to N1.15 billion, down from N3.69 billion in December 2024. This, alongside improved operating profit, led to lower interest expenses and a stronger interest coverage ratio.
The company’s stock has gained 68.9 percent year-to-date, ranking 11th on the NGX. Over the past four weeks, shares have climbed 20 percent, making it the 8th best performer on the exchange. Investors saw a dividend of N2 per share, offering a 3.78 percent yield, a solid return in a competitive market.
