NASCON Allied Industries Plc, a leading food seasoning and processing company in Nigeria, has achieved remarkable growth in key performance indicators for the fiscal year ending December 31, 2022.
The company’s profit after tax experienced a substantial surge of 84 per cent, skyrocketing from N2.97 billion to an impressive N5.47 billion.
This remarkable financial achievement was applauded by shareholders during NASCON’s annual general meeting (AGM) held over the weekend in Lagos.
The analysis of NASCON’s annual report revealed a significant increase of 98 per cent in profit before tax, soaring from N4.24 billion to an impressive N8.37 billion, marking an incredible growth of N4.12 billion.
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Moreover, the company’s turnover witnessed a substantial upswing, rising from N33.28 billion to N58.79 billion, reflecting a remarkable 77 per cent increase compared to the previous year.
Earnings per share also experienced a substantial improvement, reaching 206 kobo in 2022 compared to 112 kobo in 2021.
In a testament to their commitment to shareholders, NASCON declared a total dividend payment of N2.65 billion, a significant increase from the N1.06 billion paid in 2021.
During the AGM, shareholders expressed their admiration for the management’s impressive performance and efficient running of the company, despite the challenging economic environment.
Mr. Tunde Badmus, a shareholder, appreciated NASCON for consistently paying dividends and acknowledged their efforts to navigate the harsh operating conditions.
Another shareholder, Mr. Anthony Omojola, praised the board and management for their improved performance and dividend declaration, highlighting NASCON’s consistent track record of dividend payments.
However, Mr. Omojola raised concerns regarding rising unclaimed dividends in the market and urged NASCON to collaborate with registrars and the investor relations department to address this issue effectively.
The shareholders unanimously approved the board’s recommendation to pay a dividend of N1 per 50k share, totaling N2.65 billion, surpassing the N1.06 billion or 40k per share paid in the previous year.
In her address to the shareholders, Mrs. ‘Yemisi Ayeni, the Chairperson of NASCON, highlighted the company’s commitment to sustainability and environmental stewardship.
She mentioned that NASCON reduced greenhouse gas emissions by five percent and successfully implemented waste reduction programs, leading to a commendable 28 percent reduction in both hazardous and non-hazardous waste generated.
Mrs. Ayeni emphasized the company’s efforts to foster positive relationships with employees, customers, suppliers, and communities while supporting initiatives that promote social well-being.
Looking ahead, Mrs. Ayeni stated that health, safety, environment, and sustainability considerations would remain crucial factors in NASCON’s policies and strategies.
Despite the challenges posed by global and national pressures, she expressed optimism about the company’s future outlook and its ability to monitor and adapt to the evolving business environment.
Ayeni concluded by affirming the board and management’s determination to continue on the right path for further business development.
Mr. Thabo Mabe, the Acting Managing Director of NASCON, shed light on the challenges faced by the company in 2022. Insecurity, congested ports, poor road infrastructure, unstable power supply, employee emigration, traffic gridlock, and foreign exchange issues were among the factors affecting business operations.
However, Mabe expressed confidence in capitalizing on the gains made in 2023, aiming for greater productive efficiency and enhanced resource utilization despite the challenges faced in the previous year.
Discussing the company’s future plans, Mabe highlighted NASCON’s focus on strategies to boost its market share.
The company’s core competence lies in refining crude salt for human and animal consumption, an area where NASCON has concentrated its efforts to achieve leading customer service standards.
Mabe emphasized their commitment to developing these markets and driving cost savings within the business to mitigate the impact of soaring input costs.
He expressed confidence in Nigeria’s vast consumer base and opportunities, affirming NASCON’s determination to contribute its part to national development.
Established in 1973 as a salt refinery in Ijoko, Ogun State, the National Salt Company of Nigeria became a joint venture between the Federal Military Government of Nigeria and Atlantic Salt & Chemical Inc. of Los Angeles, California, USA.
In 1991, the company underwent privatization, and its shares were subsequently listed on the Nigerian Stock Exchange in October 1992. Dangote Industries Limited acquired the majority shares, following the reverse takeover of NASCON by Dangote Salt Limited (DSL) in 2007. NASCON’s principal activities encompass the processing of raw salt into refined, edible, and industrial salt. The company also produces seasoning and vegetable oil.