NASCON Allied Industries Plc recently released its financial statements for the year ended December 2017. The company showed a massive improvement in all indices. Revenue increased from ₦18.2 billion in 2016 to ₦27 billion in 2017. Profit before tax jumped by over 100% from ₦3.5 billion in 2016 to ₦7 billion in 2017. Profit after tax also rose massively from ₦2.4 billion in 2016 to ₦5.3 billion in 2017. The results represent the biggest in the last 5 years of the company’s history.
Earnings per share also increased from ₦0.91 in 2016 to ₦2.02 in 2017. The company has proposed a dividend of ₦3.97 billion in 2017, amounting to ₦1.50 per share. This represents a 110% increase from the ₦0.70 dividend paid in 2016.
2017 was very salty
Salt earnings remain a key driver of revenue. Revenue from salt comprised 81% or ₦22.2 billion of the ₦27 billion made in 2017, largely unchanged from the proportion of revenues it generated in 2016. Seasoning generated 2% of revenues earned by the company in 2017.
Sales improved across regions
NASCON also improved revenue across its geographical locations. Revenue from the eastern part of the country increased from ₦1.1 billion in 2016 to ₦2.2 billion in 2017. Revenue from the west also moved from ₦5 billion in 2016 to ₦5.6 billion in 2017. Revenue from the northern part of the country showed the biggest improvement as it jumped from ₦12 billion in 2016 to ₦19 billion in 2017.
The northern part of the country thus accounted for 70% of the company’s revenue in 2017, a 4.06% increase from the 65.9% share they generated in 2016. NASCON has thus increased its market share.
National Salt Company of Nigeria was established as a salt refinery at Ijoko, Ogun State in 1973, as a joint venture between the Federal Military Government of Nigeria and Atlantic Salt & Chemical Inc. of Los Angeles, California, USA.
The Company was privatised in 1991 with its shares listed on the Nigerian Stock Exchange in October 1992, through which Dangote Industries Limited purchased majority shares. Following the reverse takeover of NASCON by Dangote Salt Limited (DSL) in 2007, NASCON acquired the assets, liabilities and business undertakings of DSL. Dangote Industries Limited (DIL) holds 62% of NASCON’s issued share capital.
Principal activities of the company include processing of raw salt into refined, edible and industrial salt. NASCON is also into the production of seasoning and vegetable oil.
NASCON shares closed at ₦23.19 on Friday’s NSE trading session, up 29.1% year to date.