NASCON Delights Shareholders With Impressive 2022 Performance

Despite the various socio-economic challenges experienced by businesses in 2022, NASCON Allied Industry (NASCON) Plc has continued to deliver on its commitment for continuous shareholders value creation and retention of its position as market leader in its core business.

The board proposed a final dividend of N1.00 per share, totaling N2.649 billion, which is subject to the appropriate withholding tax and approval, will b*e payable to shareholders whose names appear in the register of members as at the close of business on April 28, 2023

For the financial year ended December 2022, NASCON recorded a revenue growth of 76.6 per cent to N58.8 billion from N33.3 billion in 2021, supported by growth in salt (up 79.8 per cent) and seasonings (up 50.0 per cent) sales. Cost of sales rose by 60.6 per cent to N34.2 billion as against N21.3 billion declared in 2021, while gross profit jumped by 105.2 per cent from N12 billion in 2021 to N24.5 billion in the period under review, operating expenses (OPEX) rose 59.9 per cent to N15.2 billion compared to N9.5 billion in 2021. Also, distribution costs almost doubled as the company continued to scale up delivery. 

Profit after tax increased by 84.1 per cent to N5.5 billion for the year, compared to N3.0 billion achieved in 2021. Earnings per share also increased to N2.06 in 2021 compared to N1.12 in 2021.

The Company total assets stood at N55.5 billion as against N40.5 billion in 2021, an increase of 37.0 per cent, while total equity amounted to N19 billion from N14.6 billion in 2021.

Analysts at Cordros Securities Limited said: “over 2022 full year, NASCON outperformed our expectations with the food producer maintaining the pace of top- and bottom-line growth it started the year with. 

“Furthermore, we like that the food producer maintained margins despite the weak operating environment and intense competition from Royal Salt in the retail segment.”

NASCON added that, “we are passionate about building a sustainable future for our organisation and key stakeholders. We bring this passion to life by harnessing innovative and sustainable business practices aimed at advancing economic, social and environmental wellbeing in the market where we operate. 

“Our purpose is not just to be the clear leader in salt manufacturing in Nigeria but also an outstanding organisation that delivers meaningful impact and value creation. As the world faces extraordinary challenges, from climate change to food insecurity and then the recent COVID-19 pandemic, we understand that delivering on our responsible business purpose is more critical than ever before.

“NASCON’s Sustainability approach is thus tactically aligned with the Dangote Group Sustainability Strategy, which is underpinned by the strategic 7 sustainability pillars that are designed to mainstream sustainability across our various departments and functions. Aptly termed ‘The Dangote Way’, it epitomizes our commitment to doing business responsibly by engraining best practices into every aspect and segment of our value chain.” 

It added that, “the 7 Sustainability Pillars provide the appropriate framework for embedding and continuously strengthening our corporate values and strategic objectives. ‘Sustainability Thinking’ enables us to balance our economic, social and environmental priorities with our financial, operational and institutional goals; while also ensuring that our practices safeguard the well-being of the present and future generations. We place high premium on maintaining our ethical values and respecting the local cultures in the market where we do business.”

In focusing on sustainability, the chairperson of the company, Yemisi Ayeni stated that, “we believe that mainstreaming sustainable business practices would enable us drive our long-term corporate success. We are therefore integrating sustainability principles and standards at the core of our business operations, and building the required structures that would enable us remain relevant today and in the future.”

According to her, “NASCON aligns with the Dangote Group’s 7 Sustainability Pillars, which outline how we would run a purpose driven business that pays close attention to the triple bottom-line issues of people, planet and profit. While sustainable profit will always be a key reason for us being in business, we understand that our people are the greatest assets that would drive these bottom-line objectives. 

“We must therefore ensure their wellbeing, safety, satisfaction and productivity. We are also strongly committed to our environmental responsibility and the need to continuously consider the wellbeing of the planet (including CO2 emissions, energy consumption, waste management and recycling) as we make critical business decisions.”

Similarly, the acting managing director of NASCON, Thabo Mabe, said, despite the diverse challenges, the company will continue to demonstrate its resilience and optimism.

To him, “we are focused on maximising the gains from our capacity expansion, human capital development, operational efficiency and aggressive trade in all market segments.”

NASCON was established as a salt refinery in Ogun State in 1973, in a joint venture between the Federal Military Government of Nigeria and Atlantic Salt & Chemical Inc. of Los Angeles, California, USA. The Company was privatised in 1991 with its shares listed on the Nigerian Exchange in October 1992, through which Dangote Industries Limited purchased majority shares. Following the reverse takeover of NASCON by Dangote Salt Limited (DSL) in 2007, NASCON acquired the assets, liabilities and business undertakings of DSL.

Principal activities of the company include processing of raw salt into refined, edible and industrial salt. NASCON is also into the production of seasoning and vegetable oil.