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.
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