Nascon Allied Industries Plc has released its full-year results for the period ending December 31, 2024, revealing a pre-tax profit of N23.6 billion.
This marks a 14.9% increase compared to the previous year’s profit of N20.5 billion, amid a strong surge in revenue.
For the reported period, the company achieved a total revenue of N120.3 billion, representing a 48.9% rise from N80.8 billion reported in 2023.
A significant portion of this revenue, amounting to N112.9 billion, came from salt sales, while the remaining revenue was generated from seasoning products.
Additionally, Nascon’s total assets rose to N78.5 billion, an increase from N65.6 billion reported the previous year, with current assets constituting a considerable share of this total.
Key highlights (2024 vs 2023)
- Revenue: N120.3 billion, +48.9% YoY
- Cost of sales: N64.8 billion, +77.7% YoY
- Gross profit: N55.5 billion, +25.3% YoY
- Other Income: N261.2 million, +34.4% YoY
- Distribution costs: N23.6 billion, +24.7% YoY
- Administrative expenses: N6.9 billion, +47.1% YoY
- Operating profit: N23 billion, +9.2% YoY
- Finance income: N1.7 billion, +93.5% YoY
- Finance cost: N1.1 billion, -17.7% YoY
- Pre-tax: N23.6 billion, +14.9% YoY
- Total Assets: N78.5 billion, +19.51% YoY
- Retained earnings: N43 billion, +56.73%
Commentary
The company reported a 48.9% year-over-year increase in revenue, reaching N120.3 billion, up from N80.8 billion in the previous year.
- Salt sales accounted for 93.8% of this total, at N112.9 billion, while seasoning sales contributed the remaining N7.4 billion.
- However, the cost of sales rose to N64.8 billion, a 77.7% increase from the previous year’s figure of N36.5 billion, with raw material costs making up a significant portion.
Despite these rising costs, the company achieved a gross profit of N55.5 billion, which is a 25.3% increase from the prior year’s gross profit of N44.3 billion.
Other income increased by 34.4% to N261.2 million, largely due to scrap sales, which accounted for 83.64% of the total, while rental income and insurance claims contributed the remainder.
- On a less favorable note, distribution costs climbed by 24.7% to N23.6 billion, and administrative expenses rose to N6.9 billion, up 47.1% year-over-year.
Conversely, the company’s finance income increased by 93.4% to N1.7 billion, up from N927.4 million the previous year, primarily driven by interest income from short-term fixed deposits.
- Additionally, the company reduced its finance costs to N1.1 billion, down from N1.4 billion reported the previous year.
Ultimately, Nascon reported a pre-tax profit of N23.6 billion, reflecting a 14.9% increase year-over-year from N20.5 billion in the previous year.
Asset position
The company’s total assets increased to N78.5 billion, up from N65.6 billion reported in the previous year.
- Total current assets accounted for N62.4 billion, which included cash and cash equivalents of N24.7 billion, inventories valued at N18.2 billion, and trade and other receivables totaling N17.2 billion.
- Non-current assets amounted to N16 billion, primarily consisting of property, plant, and equipment, which stood at N12.3 billion. Additionally, rights of use of access contributed N3.7 billion to the non-current asset total.
