NASCON to focus more on cost- saving strategy

NASCON Allied Industry ( NASCON) Plc has reiterated its commitment to focus more on a cost- saving strategy in its business of refining crude salt for human consumption.

At the 2022 yearly general meeting of the company held in Lagos at the weekend, the Acting Managing Director, Thabo Mabe, said the core business is to refine crude salt for both human and animal consumption, noting that the company would continue to focus more on this area to attain leadership position in customer service standard in the industry and enhance profitability.

He assured shareholders that the company would consolidate on gains recorded in the review period to achieve greater efficiency in productivity and boost resource utilisation.

Besides, shareholders at the meeting approved a final dividend of N1, translating to a total of N2.6 billion for the 2022 financial year, and payable to shareholders whose names appear in the register of members as at the close of business on April 28, 2023.

Earlier, the chairman, Yemisi Ayeni, said the firm recorded revenue growth of 76.6 per cent to N58.8 billion from N33.3 billion in 2021, supported by growth in salt ( up 79.8 per cent) and seasonings ( up 50 per cent) sales while cost of sales rose by 60.6 per cent to N34.2 billion as against N21.3 billion declared in 2021. According to her, gross profit increased by 105.2 per cent from N12 billion in 2021 to N24.5 billion in the period under review. Operating expenses ( OPEX) also rose 59.9 per cent to N15.2 billion compared to N9.5 billion in 2021. The company's Profit after tax increased by 84.1 per cent to N5.5 billion for the year, compared to N3 billion achieved in 2021 while earnings per share also increased to N2.06 in 2021 compared to N1.12 in 2021.

Its total assets stood at N55.5 billion as against N40.5 billion in 2021, representing an increase of 37 per cent, while total equity amounted to N19 billion from N14.6 billion in 2021.

Ayeni said the company had maintained its market position in the industry over the years due to its ability to review the firm's strategy in line with market and economic realities.

According to her, these reviews have provided valuable feedback and enabled them to make strategic adjustments.