Shareholders of NASCON Allied Industries, a subsidiary of Dangote Industries Limited, yesterday approved the N3.97 billion dividend recommended for the year ended December 2017. The dividend, which translates to 150 kobo per share, was approved at the annual general meeting (AGM) of the company in Lagos.
Some of the shareholders, who spoke at the meeting, commended the companyâ€™s performance and appreciated the board and management who they said worked tirelessly to ensure a higher profitability and payment of dividend.
For instance, Chairman of Trust Shareholders Association of Nigeria, Alhaji Muktar Muktar said that recording a total revenue increase of 48 per cent in the year under review was a great feat given that many companies recorded losses as the domestic economy gradually recovers from recession.
He stated that NASCON adopted global best practices in maintaining strategic reserves which showed that the management cared about the future growth and expansion of the company.
In her address, Chairperson of the company, Mrs. Yemisi Ayeni said the 150 kobo dividend represented a significant improved from 2016 when 70 kobo was paid, totally N1.85 billion.
According to her, through intense focus and operational discipline, the company delivered unprecedented returns in its salt segment and also increased sales posted in the highly competitive seasoning market.
Ayeni said the revenue increased from N18.2 billion in 2016 to N27 billion in 2017. Profit before tax jumped by over 100 per cent from N3.5 billion in 2016 to N7 billion, while profit after tax rose 121 per cent from N2.4 billion in 2016 to N5.3 billion.
She explained that they leveraged on their core competencies, operated flexible pricing of their products, expanded their fleet operations focused on reducing fleet turn-around time, while deploying compelling brand communications to grow value.
Ayeni said: â€œWe are optimistic about the year ahead, as we remain strongly committed to executing our sustainable growth strategy, thereby growing consumer trust and shareholder confidence.â€
On his part, the Managing Director of NASCON Allied Industries Plc, Mr. Paul Farrer, said company had embarked on strategies to ensure resumption in the production of tomatoes paste and vegetable oil to boost operations and bottom-line.
According to him, the company would resort to backward integration to ensure revival of the two production lines.
He added that the company would continue to leverage synergies and enhance efficiencies across the business operations to curtail costs.