The performance score-card of Nascon Allied Industries Plc for third quarter ended September 30, 2017, was on Monday presented to the Nigerian Stock Exchange (NSE), showing robust growth in sales revenue, even as net profit growth was faster
Sales revenue for the period rose by N7.917bn or 61.88% from N12.794bn to N20.712bn, of which N17.746bn was earned from sale of edible, refined, bulk and industrial salt, as well as seasoning, tomato paste and vegetable oil, as against the previous N11.208bn. The remaining N2.965bn was earned from freight services to customers by transporting the company’s products purchased to their destinations, up from N1.586bn. A total of N14.54bn of the revenue for the period by geographical locations, came from the north of Nigeria, up from N8.409bn; followed by N4.459bn from the west, as against N3.561bn, while the most significant growth came from the East, which climbed 107.83% to N1.712bn from N824.147m.
Cost incurred in the process jumped by 53.39% to N13.085bn from N8.53bn; with direct material cost gulping N8.134bn from N5.091bn; followed by the N2.409bn spent on external haulage, as against N1.578bn in prior third quarter, among others; resulting in gross profit of N7.626bn, compared with the N4.264bn of the corresponding third quarter of 2016, representing an increase of 78.86%.
Investment income, driven mainly by fixed deposit earnings increased from N21.799m to N141.036m, up by 546.98%; other income fell to N974,000 from N2.204m; distribution expenses dropped slightly to N517.663m from N537.354m, with N405.15m spent on marketing expenses, from N486.014m. Administrative expenses climbed from N972.524m to N1.217bn, with employee costs representing N304.963mm, from N275.329m; administrative and management fees jumped to N186.129m from N85.259m. Finance cost (charges) for the period fell from N185.674m in the corresponding period of last year, to N72.113m.
Profit before tax rose from N2.592bn to N5.962bn; just as income tax expense rose to N1.907bn from N829.687m; following which net profit increased by N2.291bn or 129.94% to N4.054bn, as against the previous N1.763bn, representing Earnings Per Share of 204 kobo, from 89 kobo.