NASCON Allied Industries Plc has continued to embrace strategies capable of enhancing its market share in the area of its core competence of refining crude salt for both human and animal consumption.
Despite the challenging operating business environment, the company has continued to achieve an impressive financial performance yearly.
The company said: “to ensure we maintain our market position; we regularly review our strategy in line with market and economic realities. These reviews provided valuable feedback during the year and allowed us to make strategic adjustments that have ensured we remained profitable notwithstanding the high operating cost driven by the increased cost of inputs and cost of doing business.”
It stated that, “we have a strong commitment to securing a sustainable future for our business and stakeholders. In order to advance the economic, social, and environmental well-being of the market where we operate, we use cutting-edge and ethical business processes to put this enthusiasm into action. Our goal is to not only establish ourselves as Nigeria’s leader in the production of salt, but also as a remarkable organisation that generates significant value.
“Delivering on our responsible business purpose is more important than ever given the immense challenges the globe is facing, especially climate change and food insecurity.”
It added that “the NASCON sustainability approach is strategically in line with the Dangote Group’s Sustainability Strategy, which is supported by the seven strategic sustainability pillars intended to mainstream sustainability throughout all our departments and operations.
“The Dangote Way, as it is aptly known, is the embodiment of our dedication to conducting business responsibly by incorporating best practices into every facet and link in our value chain. The seven Sustainability Pillars offer the ideal foundation for establishing and sustaining our corporate values and strategic goals.”
For the financial year ended December 31, 2022, NASCON recorded a turnover of N58.79 billion representing a 77 per cent increase from the previous year’s N33.28 billion in 2021. Profit after tax increased by 84 per cent to N5.47 billion, compared to N2.97 billion in 2021. Earnings per share also increased to N2.06 in 2022 compared to N1.12 in 2021.
The board has recommended and paid a dividend of N1.00 per share, totalling N2.65 billion as against N1.06 billion paid in 2021.
Speaking to the shareholders at the company’ 2022 annual general meeting held recently in Lagos, the chairperson, Mrs ‘Yemisi Ayeni, said the company during the period reduced greenhouse gas emissions by five per cent, saying that the company implemented waste reduction programmes and achieved a 28 per cent reduction in hazards and non-hazardous waste generated.
“We have strengthened our relationships with our employees, customers, suppliers, and communities and supported initiatives that promote social well-being,” Ayeni said.
She added that, “sustainability is a critical aspect of our business, and we are committed to creating value by balancing economic, social and environmental considerations. At NASCON, we have integrated sustainable practices that align with the United Nations Sustainable Development Goals (SDGs), into every aspect of our operations.”
Regarding the future, Ayeni said, health, safety and environment and sustainability considerations remain major drivers of policy and strategy at NASCON.
“Although global and national pressures continue to pose challenges, we are optimistic about the future outlook as we continue to monitor the business environment.
“Despite the identified challenges, the board and management of NASCON are determined to continue on the right path to develop the business,” Ayeni said.
The acting managing director of NASCON, Mr Thabo Mabe said, insecurity, congested ports and poor road infrastructure, unstable power supply along with employee emigration, traffic gridlock and foreign exchange issues contributed to the challenges of doing business in 2022.
Mabe expressed optimism that “2023 will involve capitalisation on our gains, leading to greater productive efficiency and enhanced resource utilisation in spite of the challenges in 2022.”
Speaking on future plans, he said, the company would continue to embrace strategies that would boost its market share, saying, “our core competence in our business is to refine crude salt for both human and animal consumption.
“This is an area where we have focused our business to attain leading customer service standards. Our plan for future growth is to continue to develop these markets and drive cost savings within the business, as input costs skyrockets.
“Nigeria is blessed with a huge consumer base and opportunities; we will be part of these opportunities and contribute our quota to power eradication.”
National Salt Company of Nigeria was established as a salt refinery at Ijoko, Ogun State in 1973, as 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 Stock 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 raw salt into refined, edible, and industrial salt. NASCON is also into the production of seasoning and vegetable oil.
