Shareholders of NASCON Allied Industries Plc, a subsidiary of Dangote Industries Limited, yesterday expressed satisfaction at the performance of the company.
They, however, urged the food seasoning company to expand its market share in order to increase revenue.
Speaking at the company’s annual general meeting (AGM) in Lagos, the shareholders commended the company’s prompt payment of dividends just as the management assured that the performance for the first half of this year holds assurance for a bumper harvest at the end of the year despite the Coronavirus pandemic effect.
NASCON reported a revenue of N27.49 billion and net profit of N1.85 billion for the year ended December 31, 2019. A dividend of 40 kobo per share was recommended by the board of directors.
A shareholder, Mrs. Bisi Bakare, said the company is known for taking care of shareholders through consistent payment of dividends, noting that despite the harsh operating environment, the company still paid a dividend of 40 kobo per share translating to a 57 per cent dividend payout ratio.
Also speaking, another shareholder, Sir Sunny Nwosu, lauded the board and management of NASCON for their ability to declare and pay dividends despite the harsh operating environment which resulted from the Apapa Wharf gridlock and the downturn in national economy. He said that while other companies are lamenting and cutting down on production, the company is paying dividend which is commendable.
He urged the company to increase its market share in the food sector especially in the South-East and South-West regions through carefully selected strategies. According him, if the company increases market share in these regions, its revenue will also increase.
He said: “The management should expand our customer base to attract more revenue. Develop strategies to penetrate the South-East and South-West markets. The plants are close to these markets.”
In his response, Managing Director, NASCON, Paul Farrer, said the company has developed plans and strategies to capture share in the stated markets and will gradually deploy them in the coming months.
He said that the company has proved resilient in the challenging environment of 2019 and is strongly focused on capacity growth and increased market penetration. He disclosed that the company will be leveraging on a number of synergies including improved output in terms of quality, quantity and business efficiency to deliver value for all stakeholders.