Nascon Allied Industries Plc, a Nigerian company that processes raw salt into refined salt, seasonings, and other food products, has recorded a 94 percent growth in finance income driven by income from short-term fixed deposits.
The subsidiary of Dangote Industries Limited saw its finance income increase to N1.79 billion in 2024 from N927 million in 2023.
Finance income represents interest earned on short-term placements with banks and other financial assets at amortised cost.
Nascon’s interest income on short-term fixed deposits surged to N1.79 billion from N927.5 billion while interest income on bank balances grew to N304,000 from N4,000 during the period.
However, the firm’s finance cost dropped to N1.18 billion in 2024 from N1.44 billion in 2023.
Nascon’s cost of sales grew faster than revenue during the period reviewed. Cost of sales grew 78 percent while on the other hand revenue grew 49 percent.
Revenue grew to N120.4 billion from N80.8 billion while cost of sales grew to N64.9 billion from N36.5 billion.
Raw materials consumed amounted to N55.9 billion, manufacturing expenses stood at N5.87 billion, employee costs stood at N1.89 billion, depreciation of property, plant, and equipment stood at N611.5 million and depreciation of right-of-use assets stood at N600.5 million.
The firm’s proposed dividend was up 100 percent at N2 during the period. EBITDA also increased by 19 percent to N27.4 billion.
Read also: NASCON to pay 200 kobo dividend as full year profit reaches N15.58bn
Cash and cash equivalent at the end of the period declined by 4 percent to N24.7 billion in 2024. Movement in cash and cash equivalents reveals that net cash from operating activities declined 80 percent to N4.02 billion from N20.05 billion.
Net cash from investing activities stood at a negative of N421 million from a negative of N894 million.
Gross profit margin declined to 46 percent from 55 percent during the period reviewed.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 19 percent to N27.4 billion from N23.1 billion. EBITDA Margin declined to 23 percent from 29 percent.
Total equity rose to N43.1 billion from N27.5 billion. Total assets increased by 20 percent reaching N78.5 billion and total liabilities declined 7 percent to N35.4 billion.
The firm recorded other operating losses stood at N2.06 billion from N268 million other operating gains.
Earnings per share rose by 11 percent, standing at N5.77 from N5.18 in 2023.
The principal activities of Nascon Allied Industries Plc include the processing of raw salt into refined, edible, and grade salt. The firm also produces seasoning cubes.
The major shareholder of Nascon Allied Industries Plc is Dangote Industries Limited which owns 62.19 percent of the issued share capital, while the remaining 37.81 percent is held by the general public. The company has 2,702,427,146 shares outstanding.
The company proposed a dividend of 200 kobo per share for the year ended 2024 as against 100 kobo per share in 2023.
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