Nascon Allied Industries Plc, a salt maker in Nigeria, has recorded an after-tax profit of N8.96 billion, driven by other operating losses in the nine months period ended 2024, BusinessDay analysis has shown.
The salt maker’s after-tax profit dipped to N8.96 billion in the nine months period ended 2024 from N11.01 billion in the similar period of 2023.
Further analysis reveals that the firm’s other operating loss grew to N1.79 billion from N7.48 billion during the period reviewed.
However, Nascon Allied Industries’ other income increased to N132.2 million from N128.5 million.
Revenue surged to N79.9 billion from N59.1 billion while cost of sales also grew to N44.6 billion from N26.8 billion.
The firm’s distribution costs increased to N15.1 billion from N12.6 billion during the reviewed period.
Total interest received surged to N935.9 billion from N476.33 billion while total interest paid increased to N933.8 billion from N875.7 billion.
Inventories grew to N17.6 billion from N8.71 billion in the comparable periods.
Nascon Allied Industries Plc suspended the proposed merger with Dangote Rice Limited.
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This was contained in a notice to the Nigerian Exchange Limited and signed by A. A. Samuel, company secretary of Nascon Allied Industries Plc which stated that the suspension was based on the current non-operational status of Dangote Rice Limited.
“Nascon Allied Industries Plc hereby notifies the Nigerian Exchange Limited and the investing public, that further to its announcement of August 30, 2023 in respect of the proposed merger of Dangote Sugar Refinery Plc, Nascon and Dangote Rice Limited, a decision has been taken to suspend the said merger at this time,” the statement said.
It said the suspension is due to the comments and recommendation of the Securities and Exchange Commission (SEC) centered around the current non-operational status of Dangote Rice Limited.
“Nascon wishes to express its appreciation to all its stakeholders and will keep the public informed of any developments as they arise,” the statement stated.
Dangote Sugar Refinery Plc made an announcement on the Nigerian Exchange Limited and the investing public which was confirmed on July 31, 2023 that its plan to merge with NASCON Allied Industries Plc. and Dangote Rice Limited.
The board of directors gave its recommendation for the proposed merger on July 28, the same day NASCON’s board approved the same plan.
The proposed merger which is set to be executed as an internal restructuring, is subject to agreement on terms and conditions by all involved parties, namely Dangote Sugar Refinery, NASCON, and Dangote Rice Limited. All three firms are subsidiaries of Dangote Industries Limited.
The board’s decision aligns with NASCON’s earlier statement where the company had outlined a similar plan, noting that the merger was subject to regulatory and shareholder approvals.
Nascon Allied Industries Plc is a Nigeria-based company that is engaged in the processing of raw salt into refined, edible, and graded salt. The Company’s products include salt, seasoning and spices.
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