Nascon profit drops by 16% in H1 to N4.8bn

Nascon Allied Industries Plc has released its unaudited results for the six months ended June 30, 2024.

The company’s financial highlights show revenue went up by 32 percent to N50.4billion, gross profit rose 16 percent to N22billion.

Nascon Allied Industries Plc is Nigeria’s leading refiner and distributor of household, food processing and industrial use salt. The company has since evolved with additional business lines to include Seasoning with production. It has facilities in Lagos State (Apapa), Ogun State (Ota), and Rivers State (Port Harcourt).

Profit before tax (PBT) decreased by 16percent to N7.2billion. Profit after tax (PAT) decreased by 16percent to N4.8billion, while earnings per share decreased by 18 percent at N3.59.

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Thabo Mabe, Managing Director, Nascon Allied Industries Plc said, “Nascon achieved a remarkable 32 percent revenue growth of N50.4 billion despite navigating a challenging business environment in Nigeria. The rising inflationary cost pressures resulted in Gross profit growth of 16percent and EBITDA of 3percent”.

“Due to the macroeconomic conditions, the currency devalued further resulting in an extraordinary foreign exchange loss of N1.97 billion which depressed PAT to N4.8 billion, a 16percent decline from the previous year. Although the current business landscape presents significant challenges, we are optimistic that our comprehensive and resilient strategy will enable us to exceed our previous year’s performance and achieve even greater success,” Mabe.

“Looking ahead, we maintain an optimistic outlook regarding the growth potential of our business. Despite the unpredictable market conditions, we remain confident in our ability to adapt to the evolving business landscape and capitalise on growth and innovation opportunities. Our confidence is bolstered by our capital investments, and our strategic focus continues to prioritize cost-effective leadership as we strive towards our vision of creating a sustainable future,” Mabe further said.