Dangote’s NASCON hits record N25.1 billion half-year revenue but profit slows
Aliko Dangote-backed salt-maker NASCON Allied Industries Plc attained its peak half-year revenue level since the company launched approximately half a decade ago in 1973 as the corporation crossed N25 billion in sales for the six months to June.
The turnover, 43 per cent greater than the figure reported a year earlier, derived its growth elementally from goods sold to northern Nigeria, which besides contributing as much as 67.9 per cent to company’s pool of sales expanded N6.2 billion on its own this time around.
Net foreign exchange gains earned NASCON N411.4 million unlike last year when a loss was reported, amounting to N164.7 million, while other income for the review period increased by nearly threefold to N24.8 million and finance income by 411 per cent to N135.6 million.
But revenue as a whole were considerably hammered by surge in operational expenditure, meaning bottom-line only saw a passable growth despite a much-improved turnover.
Including tax spend, the company committed N7.2 billion on costs compared to a year earlier, with cost of sale being the main pressure point.
ALSO READ: NASCON approves pay for Halima Dangote, other directors
Pre-tax profit came to N2.3 billion relative to the N2.1 billion posted for the corresponding period of last year. Rising by 5.8 per cent, net profit was N1.5 billion.
Net profit margin, which depicts the portion of revenue that has turned to profit, stood at 6.1 per cent.
NASCON, formerly known as National Salt Company of Nigeria after whose acronym the firm is now named, was owned by the Nigerian government until the Dangote Group, controlled by Africa’s richest man, purchased a majority stake in it in 2007 via a reverse takeover.
The share price of NASCON, whose product mix comprises salt, seasoning and spices, is currently at its 52-week low on the Nigerian Exchange and hasn’t seen any movement since it touched N11 on 5 July.
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Aliko Dangote-backed salt-maker NASCON Allied Industries Plc attained its peak half-year revenue level since the company launched approximately half a decade ago in 1973 as the corporation crossed N25 billion in sales for the six months to June.
The turnover, 43 per cent greater than the figure reported a year earlier, derived its growth elementally from goods sold to northern Nigeria, which besides contributing as much as 67.9 per cent to company’s pool of sales expanded N6.2 billion on its own this time around.
Net foreign exchange gains earned NASCON N411.4 million unlike last year when a loss was reported, amounting to N164.7 million, while other income for the review period increased by nearly threefold to N24.8 million and finance income by 411 per cent to N135.6 million.
But revenue as a whole were considerably hammered by surge in operational expenditure, meaning bottom-line only saw a passable growth despite a much-improved turnover.
Including tax spend, the company committed N7.2 billion on costs compared to a year earlier, with cost of sale being the main pressure point.
ALSO READ: NASCON approves pay for Halima Dangote, other directors
Pre-tax profit came to N2.3 billion relative to the N2.1 billion posted for the corresponding period of last year. Rising by 5.8 per cent, net profit was N1.5 billion.
Net profit margin, which depicts the portion of revenue that has turned to profit, stood at 6.1 per cent.
NASCON, formerly known as National Salt Company of Nigeria after whose acronym the firm is now named, was owned by the Nigerian government until the Dangote Group, controlled by Africa’s richest man, purchased a majority stake in it in 2007 via a reverse takeover.
The share price of NASCON, whose product mix comprises salt, seasoning and spices, is currently at its 52-week low on the Nigerian Exchange and hasn’t seen any movement since it touched N11 on 5 July.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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