Nascon Allied Industries Plc has released its unaudited financial results for Q1 2025, posting an impressive 515% year-on-year (YoY) growth in pre-tax profit to N11.310 billion.
The 39th most valuable (N143 billion) company on the NGX as of April 25, 2025, also recorded a 515.02% YoY surge in profit after tax, which rose to N7.578 billion in the first quarter already 48.63% of its full-year 2024 net profit, signaling a potentially record-breaking year ahead.
Key highlights (Q1 2025 v. Q1 2024):
- Revenue: N41.853 billion +77.21% YoY
- Cost of sales: N23.957 billion +92.26% YoY
- Gross profit: N17.896 billion +60.39% YoY
- Selling and distribution expenses: N5.119 billion +2.51% YoY
- Net finance income: N887 million +1.359.37% YoY
- Basic EPS: N3.74 +101.08% YoY
- Cash and cash equivalent: N5.615 billion +30.25%.
- Total assets: N25.011 billion +17.17%
Cursory analysis
A cursory look at the results shows that the impressive performance was driven by a combination of factors, including robust revenue growth, moderate increases in overhead costs, and a decline in foreign exchange losses.
Revenue saw a remarkable upswing, with earnings from the northern segment surging by over 86%, contributing more than 77% of the company’s total revenue, a clear indicator of regional market strength.
On the cost side, raw material costs, which account for over 87% of the cost of sales, saw a notable upswing.
Combined with anticipated high delivery expenses, this continues to inflate operating costs and remains a key area of concern, especially as input price volatility persists.
Nevertheless, a sharp decline in foreign exchange loss, from N3.056 billion in Q1 2024 to just N55.38 million in Q1 2025, provided crucial support to the company’s bottom-line performance, helping offset the pressure from rising operational expenses.
Balance sheet analysis
Nascon’s balance sheet expanded by 7.09% to N90.817 billion in Q1 2025, with current assets making up more than 82% of this total, indicating a strong liquidity position.
The company’s equity grew by an impressive 76.40% to N50.633 billion, now accounting for 55.73% of total assets. This shows a solid foundation, with more of the company’s assets funded by shareholders’ funds rather than debt.
On the debt side, Nascon reduced its borrowings to N1.145 billion in Q1 2025, down from N3.696 billion in December 2024.
This reduction in debt, in addition to improved operating profit, helped lower interest expenses, which in turn improved the company’s interest coverage ratio.
Share price performance
Nascon started the year with a share price of N31.35 and has since gained 68.9%, placing it 11th on the NGX in terms of year-to-date performance.
Over the past four weeks, the stock has risen by 20%, making it the 8th best performer on the NGX during that period.
For the 2024 financial year, Nascon paid a dividend of N2 per share, offering a dividend yield of 3.78% — a solid return for investors.
