NASCON Allied Industries Plc has boosted its portfolio with new products in order to consolidate performance and sustain its growth trajectory.
The new products, which are Stew mix and Curry powder have been widely acceptable by the market. The company is investing in backward integration projects as a strategy to diversify and add more value to both its shareholders and the Nigerian economy.
The company said that the new products would enhance the company’s turnover, profitability and ultimately rub off positively on the shareholders.
Recently, the managing director of the company, Paul Farrer, explained that the firm entered into the product category in response to an identified supply gap within the Nigerian market where local production and imports could not effectively meet local demand.
Chairman, board of directors of NASCON, Mrs. Yemisi Ayeni at the sounding of the closing gong on the floor of the Nigerian Stock Exchange (NSE) stated that adhering to best corporate governance has yielded the desired results as the company performed strongly despite the harsh operating environment, delivering good returns to all stakeholders.
She said “we are committed to best corporate governance requirements as all our board members have passed the fiduciary test.”
She told the stockbrokers that NASCON Allied Industries is the company to watch out for in the future in terms of performance as it is breaking new grounds while embarking on projects that will enable it to remain a reference point in the food industry.
To increase market share and improve efficiency, Ayeni said the company would be investing in salt packaging and seasoning cubing lines.
It would be recalled that executive director, Commercial, Fatima Aliko Dangote recently assured the shareholders of good returns on their investments, noting that the company is doing so much to enhance their stakes on a consistent basis.
Farrer said the company is planning fresh investments that would enable it boost efficiency in its operations.
Ayeni explained that the company leveraged its core competencies and operational discipline to advance the overall business and deliver unprecedented returns to shareholders.
The category manager, NASCON Allied Products, at the Lagos International Trade Fair, Ms. Oluwatoni Odewale, said that the introduction of Dangote Stew mix and Curry powder would enrich the meals of many families, saying that the products were fortified with vitamins and minerals that would promote healthy and nutritious meals.
The company in its half year results for the period ended June 30, 2018, recorded a net profit of N2.2 billion for the first half of the year 2018. The result is a positive result because it recorded N1.9 billion profit within the same period last year.
Gross revenue for the period fell to N12.8 billion compared to N12.7 billion reported last year. From the company’s profit and loss figures, the salt producing company had reported N86.5 million in H1 2017. With significant increase in investment income, the company profit closed H1 2018 at N2.2 billion from N1.96 billion reported in H1 2017.
Profit before tax also increased by 12.4 per cent to N3.2 billion from N2.8 billion reported in H1 2017 while revenue rose marginally by 0.7 per cent to N12.8 billion from N12.7 billion reported in H1 2017.
The Shareholders of NASCON Allied Industries, a subsidiary of Dangote Industries Limited, early this year approved the N3.97 billion dividend recommended for the year ended December 2017. The dividend, which translates to N1.50 per share, was approved by shareholders of the company this year.
The company had a fantastic full year, 2017 result. Revenue increased from N18.2 billion in 2016 to N27 billion in 2017. Profit before tax jumped by over 100 per cent from N3.5 billion in 2016 to N7 billion in 2017. Profit after tax also rose massively from N2.4 billion in 2016 to N5.3 billion in 2017.
Ayeni said the N1.50 dividend represented a significant improved from 2016 when 70 kobo was paid, totally N1.85 billion. According to her, through intense focus and operational discipline, the company delivered unprecedented returns in its salt segment and also increased sales posted in the highly competitive seasoning market.
Ayeni said the revenue increased from N18.2 billion in 2016 to N27 billion in 2017. Profit before tax jumped by over 100 per cent from N3.5 billion in 2016 to N7 billion, while profit after tax rose 121 per cent from N2.4 billion in 2016 to N5.3 billion.
She explained that they leveraged on their core competencies, operated flexible pricing of their products, expanded their fleet operations focused on reducing fleet turn-around time, while deploying compelling brand communications to grow value.
Ayeni said, “We are optimistic about the year ahead, as we remain strongly committed to executing our sustainable growth strategy, thereby growing consumer trust and shareholder confidence.”
On his part, Farrer, said company had embarked on strategies to ensure resumption in the production of tomatoes paste and vegetable oil to boost operations and bottom-line. According to him, the company would resort to backward integration to ensure revival of the two production lines.
He added that the company would continue to leverage synergies and enhance efficiencies across the business operations to curtail costs.
NASCON was founded in 1973 and listed on the Nigerian Stock Exchange in 1991 when the Dangote Group first invested in the company before becoming the majority shareholder in 1996. The company engages in the refining and marketing of salt of different grades. The company’s products include edible, refined, bulk and industrial salt. It also engages in the production of tomato paste, seasoning and vegetable oil. Its brands include Dan-Q and Dangote Salt.