NASCON Allied Industries Plc Reports Impressive Financial Performance and Sustained Dividend Payments

NASCON Allied Industries Plc has demonstrated remarkable progress in multiple performance indicators during the year ending on December 31, 2022. A staggering surge of 84 percent in profit after tax has been recorded, skyrocketing from N2.97 billion to an impressive N5.47 billion. Shareholders gathered at the company's annual general meeting (AGM) held in Lagos over the weekend applauded NASCON's board and management for their unwavering commitment to consistent dividend payments.

Impressive Financial Performance in 2022

An insightful analysis of the food seasoning company's annual report reveals a substantial increase of 98 percent in profit before tax, surging from N4.24 billion to an impressive N8.37 billion, thereby representing a substantial increment of N4.12 billion. Turnover witnessed a remarkable upswing, reaching N58.79 billion, marking a remarkable 77 percent increase when compared to the previous year's figures of N33.28 billion. In tandem with this impressive growth, earnings per share have climbed to 206 kobo in 2022, contrasting sharply with the 112 kobo recorded in 2021. Notably, a significant dividend payment of N2.65 billion has been approved, a stark contrast to the N1.06 billion disbursed in 2021.

Shareholders Appreciate Dividend Payments and Express Concerns

During the AGM, Mr. Tunde Badmus, a shareholder, voiced his appreciation for the management's impressive performance and efficient handling of the company, despite operating in a challenging economic environment. Badmus extended gratitude to the company for its dividend declaration, even in the face of such adversities. Echoing the sentiments, Mr. Anthony Omojola, former National Coordinator of the Independent Shareholders Association of Nigeria, praised NASCON's board and management for their enhanced performance and consistent dividend distribution, emphasizing their steadfastness in maintaining dividend payments over the years.

Nevertheless, Omojola urged the company to collaborate closely with registrars and the investor relations department to address the escalating issue of unclaimed dividends in the market. The shareholders unanimously approved the recommended dividend payment of N1 per 50k share, totaling an impressive N2.65 billion, as proposed by the board. This substantial figure stands in stark contrast to the comparative period in 2021, which saw a declaration of N1.06 billion or 40k per share.

Chairperson's Announcement of Environmental Achievements

Addressing the shareholders, Mrs. 'Yemisi Ayeni, Chairperson of the company, proudly announced that NASCON had achieved a five percent reduction in greenhouse gas emissions during the reported period. Ayeni also highlighted the successful implementation of waste reduction programs, resulting in a commendable 28 percent reduction in both hazardous and non-hazardous waste generation. She emphasized that NASCON had strengthened its relationships with employees, customers, suppliers, and communities, while also supporting initiatives that promote social well-being.

Looking toward the future, Ayeni assured shareholders that health, safety, environment, and sustainability considerations would continue to drive the company's policies and strategies. Despite the persistent challenges on both a global and national scale, NASCON remains optimistic about its outlook. Ayeni affirmed the board and management's unwavering commitment to navigating the identified challenges and guiding the business forward on the right path of development.

Challenges Faced in 2022 Acknowledged by Acting Managing Director

The Acting Managing Director, Mr. Thabo Mabe, acknowledged the challenges faced by the business in 2022, including insecurity, congested ports, poor road infrastructure, unstable power supply, employee emigration, traffic gridlock, and foreign exchange issues. Nonetheless, Mabe expressed optimism and a strategic vision for capitalizing on the gains made in 2023, aiming to enhance productive efficiency and optimize resource utilization despite the obstacles encountered in the preceding year.

Outlining future plans, Mabe emphasized the company's commitment to adopting strategies that would bolster its market share. NASCON's core expertise

 lies in refining crude salt for both human and animal consumption, with a dedicated focus on delivering exceptional customer service standards. Mabe stressed the company's intent to expand and develop these markets while simultaneously driving cost savings within the business, especially considering the escalating input costs. He expressed confidence in Nigeria's extensive consumer base and identified numerous opportunities in which NASCON aims to participate actively, contributing significantly to national progress.

The National Salt Company of Nigeria was initially established in 1973 as a salt refinery in Ijoko, Ogun State, through a joint venture between the Federal Military Government of Nigeria and Atlantic Salt & Chemical Inc. of Los Angeles, California, USA. Following privatization in 1991, the company's shares were listed on the Nigerian Stock Exchange in October 1992, and majority shares were acquired by Dangote Industries Limited. In 2007, NASCON underwent a reverse takeover by Dangote Salt Limited (DSL), leading to the acquisition of DSL's assets, liabilities, and business undertakings. NASCON's principal activities encompass the processing of raw salt into refined, edible, and industrial salt, along with the production of seasoning and vegetable oil.