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NASCON records N2.97bn net profit

National Salt Company of Nigeria (NASCON) Allied Industry Plc, a subsidiary of Dangote Industries (DIL) Ltd., said it recorded a net profit of N2.97 billion, while profit before tax rose from N3.9 billion to N4.3 billion for the year 2021.

This translates to a 10.25 per cent profit before tax increase.

The company said this in a statement signed by Mr Francis Awowole- Browne, Media and Communication Personnel, DIL, on Sunday in Lagos.

According to the statement, shareholders of the company commended its impressive performance, in spite of the harsh economic operating environment, just as the company emerged the best haulage company of the year.

NASCON Chairman, Mrs Yemisi Ayeni, said the company was able to surmount the crisis posed by the COVID-19 pandemic and the attendant unfavourable economic climate.

This, she noted the company was able to achieve due to certain business strategies put in place, which insulated the company from the negative effects of the pandemic.

Also, Acting Managing Director, NASCON, Mr Thabo Mabe, stated that the company would not rest on its achievements but move from street to street, market to market, introducing its array of products to consumers.

“As a company in the fast-moving consumer goods sector, the management team has developed plans and strategies to capture more share in chosen markets and will gradually deploy them in the coming months,” he said.

Group Executive Director, Commercial, NASCON, Hajiya Fatima Aliko Dangote, said the company used the period of the downturn occasioned by the pandemic to lay a solid groud with the construction of the state of the art salt processing factory in Apapa.

“Going forward, the company would begin to reap the reward which ultimately would translate to higher dividends for the shareholders,” she said.

Representative of the shareholders, Mrs Bisi Bakare, said the performance reflected its management’s ability to steer through difficult times in the face of inadequate power supply, fluctuating exchange regime and dwindling consumers’ purchasing power.

She stated that the overall performance of the company was also reflective of its seven sustainability pillars geared towards ensuring that the company connects with all stakeholders.

Another shareholder, Mrs Adetutu Siyanbola, said the company’s transport team section should be commended for winning the best haulage company of the year.

The development, she said, was worthy of note; out of the 684 companies that enrolled for the Road-Transport-Safety-Standardisation-Scheme of the Federal Road Safety Corps(FRSC).

A shareholders’ rights’ activist, Mr Sunny Nwosu, lauded the board and management of NASCON for their ability to pay dividends in spite of the harsh operating environment such as the Apapa Wharf gridlock and the downturn in national economy.

He noted that while other companies were lamenting and cutting down on production, the company was paying dividend; a commendable development.

NASCON

NASCON to distribute N1.06bn dividend to shareholders

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Shareholders of NASCON Allied Industries Plc have approved a total dividend of N1.06 billion declared by the company for the financial year ended Dec. 31, 2020.

The shareholders unanimously gave the approval at the company’s Annual General Meeting on Friday in Lagos.

The dividend translated to 40k per share to be paid to qualified shareholders on May 31.

Speaking at the meeting, the National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, lauded the company for sustaining dividend payment in spite of the COVID-19 pandemic.

Bakare said the company’s performance during the year under review was better than 2019, despite the challenging environment occasioned by the pandemic.

She urged the board and management to sustain the growth path for enhanced returns to all stakeholders.

Also speaking, the founder, Independent Shareholders Association of Nigeria, Mr Sunny Nwosu, commended the board for the consistency in dividend payout.

Nwosu, however, urged the company to improve on the dividend in the years ahead.

He also called on the company to expand its footprint in the South East and West to boost revenue and profitability.

Responding to the shareholders, the Chairman, Mrs Yemisi Ayeni, assured them of enhanced dividend pay out in the years ahead.

Ayeni said: “2020 was a challenging year for our business and the world in general.

“Yet it was also a year that provided our business the opportunity to revive service delivery processes, reposition the salt business based on our additional capacity and focus on our distribution models.”

Ayeni said the company had invested heavily in a new salt refinery to produce high quality products for its discerning products.

“This is a state-of-the-art salt refinery plant, using best practices to produce high quality products for our discerning customers,” she said.

Ayeni noted that the company reviewed its strategy in line with market and economic realities to maintain its position in the industry.

Mr Paul Farrer, the company’s Managing Director, said the major challenge in the Nigerian business environment in 2020 was the outbreak of the COVID-19 pandemic.

Farrer noted that the pandemic impacted various aspects such as the supply chain, human health and consumer purchasing power.

“Despite the challenges experienced in the business environment, we achieved revenues of N28.01 billion and EBITDA of N6.36 billion.

“Profit after tax for the year was N2.69 billion compared with N1.85 billion in 2019 with earnings per share of N1.02 (70k in 2019),” Farrer said.

On outlook for NASCON in 2021, he expressed optimism of enhance growth and performance in spite of the diverse challenges.

“Despite the diverse challenges faced during these trying times, we continue to demonstrate our resilience and optimism into 2021.

“We are focused on maximising the gains from our capacity expansion, human capital development, operational efficiency and aggressive trade in all market segments,” he said.