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NASCON Annual General Meeting 2018

NASCON Allied Industries Plc has said it will retain its focus on implementing a sustainable expansion strategy in a bid to increase its market share in the food sector. The Chairperson, NASCON, ’Yemisi Ayeni, said the company regularly reviewed its strategy last year to ensure alignment with market realities.

She told shareholders at the company’s Annual General Meeting on Thursday in Lagos that the review was done “in a bid to deliver on our commitment to continuous value creation and retention of our position as market leader in our core business.”

She said, “In 2019, we remain positive about our business, and we will retain our focus on implementing a sustainable expansion strategy. During the year, we would continue to drive new seasoning products, whilst constantly engaging our shareholders.

In respect of our core salt business, we are excited about our significant investment in expanding our refined capacity while leveraging on our brand dominance.

This capacity would be focused on driving volumes in both the sachet and corporate segments of the market.” The Executive Director, Commercial, NASCON, Fatima Aliko-Dangote, described NASCON products as widely accepted in the market, saying the company introduced three new products in 2018.

She said the company would introduce more products this year as part of strategies to meet the needs of its diverse customer base. The Managing Director, NASCON, Paul Farrer, said the company demonstrated resilience in the challenging environment last year, adding it remained strongly focused on capacity growth and increased market penetration.

He disclosed that the company achieved sales volume of 397,561 metric tonnes in 2018, with revenue of N25.77bn and earnings before interest, taxes, depreciation and amortisation of N7.95bn and a profit before tax of N6.45bn with a 25 per cent margin.

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Dangote Bows Out As NASCON Chairman

Says firm underwent significant changes in 3 years

The outgoing chairman of NASCON Allied Industries Plc, Alhaji Aliko Dangote said, the company has undergone significant change in the past three years.

Speaking at the company’s annual general meeting held yesterday in Lagos, Dangote said, “Through my tenure, the company has seen substantial investment in expanding of product lines as well as strengthening and restructuring almost every aspect of its existing operation.

In 2015, our objective was to grow the seasoning, refined oil and tomato paste businesses to ensure that these new product lines complement and strengthen our existing refined salt businesses, contributing to revenue and delivering profit.” 

LEADERSHIP PAGE 17, THE NATION PAGE 38

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NASCON Raises Dividend To 150kobo As Profit Rises 121% To N5.3bn

NASCON Allied Industries Plc has recorded a jump of 121 percent in profit after tax (PAT) for the year ended December 31, 2017, despite the challenging operating environment.

The member of Dangote Group announced a revenue of 27.064 billion in 2017, showing an increase of 47 percent from N18.292 billion in 2016. Cost of sales rose from N12.374 billion to N17.070 billion, while gross profit improved by 68 per cent to N9.994 billion compared with 5.917 billion in 2016. Administrative expenses rose from N1.479 billion to N1.774 billion, just as operating expenses rose from N3.818 billion in 2016 to N7.626 billion in 2017. However, finance cost fell from N357 million to N72 million.

Consequently, profit before tax jumped by 124 per cent to N7.909 billion, from N3.516 billion in 2016. PAT grew slower by 121 per cent from N2.415 billion to N5.343 billion, due to a high tax that rose to N2.564 billion, from N1.101 billion in 2016.

The jump in bottom line made the directors to recommend a dividend of 150 kobo per share, up from 70 kobo paid the previous year. NASCON Allied Industries Plc last year assured shareholders of higher returns on their investment, saying it would roll out more products during the year.

According to the Chairman of NASCON Allied Industries Plc, Yemisi Ayeni, when introduced, the new products would enhance the company’s turn over, profitability and ultimately rub-off positively on the shareholders. Ayeni revealed that the company would also be investing in salt packaging and seasoning cubing lines to increase market share and improve efficiency.

Also speaking to the shareholders last year, Executive Director, Commercial, NASCON Allied Industries, Fatima Aliko Dangote said the company was doing so much to enhance their stakes on a consistent basis.

THISDAY ON MONDAY PAGE 37

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Shareholders laud NASCON over dividend payout

For increasing investment value through consistent dividend payout and adherence to corporate governance principles, shareholders of NASCON Allied Industries Plc at the weekend, commended the company’s board on the 2015 performance, even as they approved a dividend of 55 kobo per share.

The shareholders who spoke at the company’s yearly general meeting in Lagos yesterday, applauded the appointment of the new Chairman of the board, noting that the company has continued to stick to its ‘old tradition’ in terms of appointing its board members over the years.

They commended the management for the impressive performance and efficient running of the company, amid harsh economic environment

Specifically, the President, Progressive Shareholders of Nigeria (PSAN), Boniface Okezie, commended the company for the dividend declared in spite of challenging environment.

Okezie lauded the management for the improved performance achieved in 2015 financial year, urging fellow shareholders to support the new chairman.

Reviewing its performance, the company’s new Chairperson, Mrs Yemisi Ayeni assured shareholders that the company would continue to invest in existing and new products lines to achieve its strategy of growing revenues within the context of improved profit margins and increase shareholder value.

She added that the company would focus on evolving strategies that would allow it to put the vegetable-oil and tomato paste plants back in operation to enhance profitability.

“We will ensure we conclude ongoing plant upgrades that will enhance the efficiency of the production lines and guarantee consistently high product standards,” Ayeni said.

She added that the company would further strengthen its existing corporate governance framework to create long-term shareholder.

The Managing Director, Paul Farrer said that the tomato paste business line which was affected by the foreign exchange policy restrictions and operations were suspended in October 2015 to arrest additional impact on account of overhead.

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Shareholders laud NASCON’s dividend payout policy

For increasing shareholders’ value on investment through consistent dividend payout and adherence to corporate governance principles, shareholders of NASCON Allied Industries Plc , at the weekend, commended the company’s board on the 2015 performance, even as they approved a dividend of 55 kobo per share.

The shareholders, who spoke at the company’s yearly general meeting in Lagos, applauded the appointment of the new Chairman of the board, noting that the company has continued to stick to its ‘old tradition’ in terms of appointing its board members over the years.

They commended the management for the impressive performance and efficient running of the company, amid harsh economic environment

Specifically, the President, Progressive Shareholders of Nigeria (PSAN), Boniface Okezie, commended the company for the dividend declared in spite of challenging environment.

Okezie lauded the management for the improved performance achieved in 2015 financial year, urging fellow shareholders to support the new chairman.

Reviewing its performance, the company’s new Chairperson, Mrs Yemisi Ayeni assured shareholders that the company would continue to invest in existing and new products lines to achieve its strategy of growing revenues within the context of improved profit margins and increase shareholder value.

She added that the company would focus on evolving strategies that would allow it to put the vegetable oil and tomato paste plants back in operation to enhance profitability.

“We will ensure we conclude ongoing plant upgrades that will enhance the efficiency of the production lines and guarantee consistently high product standards,” Ayeni said.

She added that the company would further strengthen its existing corporate governance framework to create long-term shareholder.

The Managing Director, Paul Farrer said that the tomato paste business line, which was affected by the foreign exchange policy restrictions and operations, were suspended in October 2015 to arrest additional impact on account of overhead.

“Tomatoes in not available in Nigeria and we do not want to buy outside because of the foreign exchange. We won’t continue operation until we can source tomatoes locally.

We intend to produce tomato concentrate from locally grown tomato0es and maybe able to provide us with raw material requirements,” he stated.

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NASCON to grow tomato business through backward integration process

Shareholders’ laud firm’s 2017 performance

To consolidate its performance and sustain growth trajectory in the next financial year, NASCON Allied Industries has assured shareholders that the firm would prioritise its tomato paste business through the adoption of backward integration process and local sourcing of raw materials.

The Managing Director of the company, Paul Farrer, while fielding questions from shareholders during the 2017 yearly general meeting held in Lagos at the weekend, explained that the firm entered into the product category in response to an identified supply gap within the Nigerian market where local production and imports could not effectively meet local demand.

“Tomatoes is on top of our priority, we are looking at backward integration and what we would do concerning the tomato paste going forward. The plants are not producing but we are looking at backward integration option for the past.”

Reviewing its performance, the chairperson, Yemisi Ayeni explained that the company leveraged its core competencies and operational discipline to advance the overall business and deliver unprecedented returns to shareholders.

According to her, a review of the firm’s financial statements for the year ended December 2017 showed improvement in all indices. She explained that revenue increased from ₦18.2 billion in 2016 to ₦27 billion in 2017, while profit before tax jumped by over 100 percent from ₦3.5 billion in 2016 to ₦7 billion.

Profit after tax also rose massively from ₦2.4 billion in 2016 to ₦5.3 billion, the biggest leap in the last 5 years.“Earnings per share also increased from ₦0.91 in 2016 to ₦2.02 in 2017 while a dividend of ₦3.97 billion approved at the AGM, amounted to ₦1.50 per share. This represents a 110 percent increase from the ₦0.70 dividend paid in 2016.

“Salt earnings remain a key driver of revenue. Revenue from salt comprised 81 percent or ₦22.2 billion of the ₦27 billion, largely unchanged from the proportion of revenues it generated in 2016 while seasoning generated two percent of the revenues.

“NASCON also improved revenue across its geographical locations. Revenue from the eastern part of the country increased from ₦1.1 billion to ₦2.2 billion, the west also moved from ₦5 billion to ₦5.6 billion while the northern part of the country showed the biggest improvement as it jumped from ₦12 billion to ₦19 billion.”

The shareholders, who approved a dividend of N1.50 kobo per share at the meeting, also commended the board and management of the company for posting good results in the full year ended December 31, 2017.

Specifically, the Chairman, Trust Shareholders Association of Nigeria, Alhaji Muktar Muktar commended the company’s performance and appreciated the board and management who worked tirelessly to ensure that shareholders are rewarded with dividends.

According to him, a total revenue increase of 48 percent in the year under review is a great feat given that many companies recorded losses as the domestic economy gradually recovers from recession.He added that the firm adopted global best practices in maintaining strategic reserves, which shows that the management cares about the future growth and expansion of the company.

Another shareholder, John Evitar in his remarks commended the board and management on the improved performance especially in consistent payment of dividends.