Nigeria’s largest salt-processing company NASCON Allied Industries Plc (NASCON) has posted N2.42 billion ($5.9 million) in profit between Jan. 1 and Sept. 30, as earnings continue to benefit from double-digit growth in revenue.
Figures contained in the company’s third-quarter filing revealed that revenue for the first nine-month period ending on Sept. 30 rose by 14.1 percent, from N21.9 billion ($53.3 million) in 2020 to N24.9 billion ($60.8 million) in 2021, while profit increased by 5.5 percent from N2.29 billion ($5.6 million) to N2.42 billion ($5.9 million).
The slower growth in profit compared to a faster expansion in revenue is attributable to a rise in administrative expenses, coupled with market rigidities and supply chain issues that led to higher distribution costs during the period.
NASCON operates as a member of the Dangote Group, a pan-African manufacturing conglomerate founded by Africa’s wealthiest man Aliko Dangote.
The company’s principal activities include processing raw salt into refined, edible and grade salt, in addition to other activities such as seasoning product and vegetable oil manufacturing.
Despite the resilient financial performance displayed in the first nine months of 2021, the value of NASCON’s total assets declined from N44.4 billion ($108.1 million) at the start of the year to N37.84 billion ($92.1 million) as of Sept. 30.
Meanwhile, the value of its liabilities fell from N32.04 billion to N23.76 billion driven by a reduction in its operating liabilities, especially in trade and other payables.
As of press time, shares in NASCON were trading at N14.65 ($0.0357), 1.03-percent higher than its opening price this year.
At the current price valuation, the company’s market capitalization is valued at N38.78 billion ($94.47 million), while the market value of Dangote’s stake is assessed at N24.14 billion ($58.78 million).
The billionaire has received a dividend of $1.6 million from the salt company since the beginning of 2021.