Nascon reports mixed results amid revenue surge and profit decline

Omokolade Ajayi -
Key Points
  • Nascon reported a 35.15% revenue increase to N79.89 billion ($48.61 million) in the first nine months of 2024.
  • Net profit dropped 18.64% to N8.96 billion ($5.45 million), impacted by rising raw material and operational costs.
  • Total assets surged 42% to N111.36 billion ($67.5 million), driven by increased inventory and trade receivables.

Nascon Allied Industries Plc, a salt-processing and seasoning company led by Nigerian billionaire Aliko Dangote, reported a mixed financial performance for the first nine months of 2024, marked by revenue growth but a setback in profitability due to mounting costs.

Despite challenging economic conditions, the Dangote Group subsidiary recorded a 35.15 percent revenue jump to N79.89 billion ($48.61 million), up from N59.11 billion ($35.88 million) in the same period in 2023.

Revenue increases, profit drops 18.64 percent

The company’s increased revenue, driven by strong demand for its salt and seasoning products, underscores its market presence in Nigeria’s consumer goods sector.

However, the gains were offset by rising costs in raw materials, energy, and operational expenses, resulting in an 18.64 percent drop in net profit.

For the period, profit fell from N11.01 billion ($6.7 million) in the nine months of 2023 to N8.96 billion ($5.45 million) in 2024, reflecting an erosion in margins amid inflationary pressures.

Dangote holds 62.2 percent stake in Nascon

Nascon operates as a key unit within Dangote Group, Africa's largest and most diversified industrial conglomerate.

The company is known for refining raw salt into edible and industrial-grade products, while also producing seasonings and vegetable oils.

As the majority owner, Dangote holds a 62.2 percent stake in Nascon Allied Industries, totaling 1,647,763,557 ordinary shares valued at about $35.6 million.

This contributes to his net worth of $27.8 billion, reinforcing his status as Africa's richest person and the 65th wealthiest globally.

Nascon's asset growth reflects resilience

Despite the challenges on the profit side, Nascon reported strong asset growth, with total assets rising from N78.27 billion ($47.45 million) in September 2023 to N111.36 billion ($67.5 million) by September 2024, a 42 percent increase.

This growth was driven by higher inventory and trade receivables, reflecting the company's readiness to meet increased market demand.

Retained earnings also grew, from N25.64 billion ($15.56 million) in the first nine months of 2023 to N34.64 billion ($20.99 million) in 2024, demonstrating Nascon's financial resilience. 

The company has implemented targeted supply chain adjustments to improve operational efficiency and control rising overhead costs.