Nascon Allied Industries Plc’s profit after tax for the first half of 2023 stood at N5.8 billion, from N1.54 billion recorded in the same period of 2022, a 276.6 percent increase.
The salt-making arm of the conglomerate Dangote Industries Limited recorded an increase of 51.85 percent in its revenue amounting to N38.16 billion in the first half of 2023, up from N25.13 billion in the same period of 2022.
Other investment income surged by 128.14 percent to N309.27 million in the first half of 2023, up from N135.56 million recorded in the same period of 2022.
The company’s investment grew due to an increase in interest from short-term fixed deposits, totalling N309.26 million, while interest income on the bank balance amounted to N1 million.
Other income reached N103.55 million compared to N24.84 million in the same period of 2022.
However, the company’s operating income saw a decline, recording a loss of N69 thousand in the first half of 2023, compared to a profit of N411.4 million in the same period of 2022.
The cost of sales also increased to N19.2 billion in the first half of 2023 from N16.76 billion in the same period of 2022.
The company’s finance costs grew due to interest on borrowing, reaching N486.5 million in the first half of 2023 compared to N222.1 million in the same period of 2022.
Net cash from operating activities increased to N7.17 billion in the first half of 2023 from N3.71 billion recorded in the same period of 2022.
In the area of investing activities, there was a reduced loss of N363.7 million, attributed to an increase in investment income in contrast to the loss of N874.17 million recorded in the same period of 2022.
However, net cash used in financing activities recorded a loss of N3.43 billion in the first half of 2023, compared to a profit of N0.417 billion in the same period of 2022, due to dividends paid.
Total cash and cash equivalents at the end of the period amounted to N16.39 billion, a rise from N10.29 billion recorded in the same period of 2022.
BusinessDay findings showed NASCON Allied Industries is planning to merger with two other companies, Dangote Sugar Refinery Plc and Dangote Rice Limited.
The proposed merger aims to bring together NASCON Allied Industries, Dangote Sugar (which owns the largest sugar refinery in sub-Saharan Africa), and Dangote Rice into a single entity, as stated in a regulatory filing on Thursday.
In a statement to the Nigerian Exchange Limited, the company said the proposed merger would be an internal restructuring executed through a Scheme of Merger, under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations.
Dangote Sugar Refinery Plc and NASCON Allied Industries Plc with market capitalisation of N464.40 billion and N88.75 billion respectively, would together with Dangote Rice Limited, with an estimated value of over N100 billion become an N553 billion entity after the merger.
According to the statement signed by Temitope Hassan, the Company Secretary/Legal Adviser, Dangote Sugar Refinery Plc, “Dangote Sugar Refinery Plc hereby notifies the Nigerian Exchange Limited and the investing public that the Board of Directors of the Company at its meeting held on July 28, 2023, resolved to recommend the proposed merger between the Company, NASCON Allied Industries Plc and Dangote Rice Limited to the shareholders of the company for consideration and approval, subject to parties agreeing terms and conditions.
“The Company, NASCON & DRL hereinafter referred to as the “merging entities” are all subsidiaries of Dangote Industries Limited.