Nascon Allied Industries Grows Half-year Profit by 23% to N1.3bn

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Nascon Allied Industries Plc monday announced its financial results for the half year ended June 30, 2016, showing a growth of 23 per cent in profit after tax (PAT). The company, which is a member of the Dangote Group, reported a revenue of N8.6 billion for the H1 of 2016, up by 30 per cent from N6.6billion posted in the corresponding period of 2015.

Cost of sale rose by 23 per cent from N4.5billion to N5.6billion, while operating expenses soared by 69 per cent from N0.6billion to N1.1billion. As a result, profit before tax grew by 23 per cent to N1.9 billion in 2016, up from N1.5billion in the corresponding period of 2015.

Similarly, PAT rose by same margin to be at N1.3 billion, compared to N1.0billion in 2015. Market operators said the performance is commendable considering the challenging operating environment.

The Managing Director of the Nascon Allied Industries Plc, Mr. Paul Farrer had in June assured shareholders that the board was optimistic about the future of the company.

Farrer said: “We remain optimistic for the future of our business. Our product lines remain a huge value driver for us as we play in categories that are life-necessities for average Nigerian and for which significant supply gaps continue to exist in the market. This situation enhanced by our renewed focus on capacity building, operational efficiency, financial discipline and aggressive trade along with consumer marketing across our active categories will position Nascon Allied Industries Plc now more than ever to access and achieve sustainable growth in the future.”

Also considering some favourable factors including large and increasing market size, favourable federal government policy, leverage on existing distribution network, positive brand image, relationship with numerous subsidiaries and related companies, increased volume and prices and diversification into other products, analysts at FSDH Merchant Bank recently made a robust forecast for the company’s future performance.

The analysts projected a turnover of N21.87 billion, N30.22 billion, N43.27 billion, N59.37 billion and N80.85 billion for the periods ending December 2016, 2017, 2018, 2019 and 2020. They also projected PAT of N2.33 billion, N3.61 billion, N5.35 billion, N7.35 billion, and N10.03 billion for the respective years.