NASCON shows resilience amidst 57% surge in input cost

NASCON’s revenue grew by 43 percent to N25.13 billion in the first half of 2o22, from N17.57 billion in the first half of 2021, BusinessDay learnt.

The salt maker’s profit for the period climbed 5 percent to N1.53 billion in the first half of 2022 from N1.45 billion in the same period of 2021.

The cost of sales jumped to N16.7 billion, indicating a 57 percent increase from N10.63 billion in the first half of last year.

Gross profit surged by 18.5 percent to N8.3 billion in the first half of this year from N7 billion in the same period of last year.

NASCON spent N5 billion on its distribution costs which indicates a 51 percent increase from N3.3 billion in the first half of last year.

Administrative expenses surged by just 3 percent to reach N1.4 billion in the first half of this year from N1.36 billion in the first half of 2021.

Finance income jumped a high 411 percent to N135.5 million in the first half of 2022 from N26.5 million in the first half of 2021.

Total assets, also jumped 8 percent to N49.3 billion in the first half of 2022 from N45.6 billion in the first half of 2021.

Net cash from operating activities recorded N3.7 billion from N971 million positive cash flow year on year.

Net cash from investing activities recorded negative of N874 million from negative cash flow of N395.6 million in the comparable periods.

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Net cash used in financing activities climbed to a positive of N417.4 million from a negative cash flow of N1.24 billion.

NASCON spent N 144.2 million on market activation in the first half of 2022, while 143.6 million was used in the same period of year indicating just 0.4 percent increase.

Branding expenses, however, dropped to N94.4 million in the first half of 2022, 57.4 percent decrease from N221.6 million in the first half of 2021.

Auditor’s remuneration surged to N13.2 million, up 43.5 percent from N9.2 million in the period reviewed.

NASCON spent N12.1 million on petrol and oil in the first half of 2022, 7 percent from N11.3 million in the first half of 2021. Interest income on short-term fixed deposits increased to N131.7 million, up by a huge 402 percent from N26.2 million in H1’21.

NASCON paid the sum of N682.3 million as local income tax in H1’22, 7 percent from N634 million in H1’21.

The salt maker’s inventories grew 51 percent to N7.7 billion in the first half of 2022 from N5.1 billion in the first half of 2021.

Total trade and other receivables dipped 21 percent to N11.2 billion in the first half of 2022 from N14.2 billion in the first half of 2021.

Cash and cash equivalents rose by 415 percent to N10.3 billion from N2 billion in the first half of last year.

NASCON Allied Industries Plc was established as a salt refining establishment under the name National Salt Company (NASCON). The company has since evolved with additional business lines to include Vegetable Oil, Tomato Paste and Seasoning with production facilities in Lagos State, Ogun State and Rivers State.