Nascon Allied Industries Plc has announced its audited financial results for the year ended December 31, 2024, showcasing robust growth and a strengthened financial position. The company achieved a remarkable 49% surge in revenue, reaching N120.4 billion, compared to the previous year. This significant increase underscores the effectiveness of Nascon’s strategic initiatives and its ability to capitalize on market opportunities. Underlying this revenue growth is a strong performance across key financial metrics. Gross profit experienced a healthy 25% increase, totaling N55.5 billion, while earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 19% to N27.4 billion, reflecting a solid 23% margin. This growth demonstrates the company’s operational efficiency and ability to manage costs effectively.
Profitability also saw substantial improvements, with profit before tax rising by 15% to N23.7 billion and profit after tax increasing by 14% to N15.6 billion. This translates to an 11% improvement in earnings per share, reaching N5.77, further enhancing shareholder value. The consistent growth in profitability highlights the company’s sound financial management and its ability to generate sustainable earnings. Nascon’s Board of Directors, recognizing this strong performance, has proposed a significant 100% increase in dividend payout to N2.00 per share, rewarding shareholders for their continued support and investment in the company. This substantial dividend increase signals confidence in the company’s future prospects and its commitment to returning value to shareholders.
Nascon’s balance sheet reflects a healthy financial position, with total assets growing by 20% to N78.5 billion. This asset growth is a testament to the company’s successful expansion and investment strategies. Moreover, Nascon has demonstrated prudent debt management, reducing its total debt to N19.5 billion from N22.7 billion in the previous year. This decline in debt is further broken down into a significant drop in borrowings to N2.86 billion from N5.53 billion, along with a decrease in lease liabilities to N3.90 billion from N4.19 billion. Trade and other payables also saw a slight decrease to N12.74 billion from N13.02 billion. These figures collectively indicate a commitment to strengthening the company’s financial foundation and reducing financial risk.
Despite the reduction in total debt, Nascon maintained a robust liquidity position, with cash and cash equivalents amounting to N24.7 billion, slightly lower than the N25.6 billion recorded in the prior year. This strong cash position provides Nascon with the financial flexibility to pursue growth opportunities and navigate potential economic headwinds. Consequently, the company’s net debt position further improved, moving deeper into a net cash position of N5.19 billion compared to N2.86 billion in 2023. This positive net cash position underscores Nascon’s financial strength and its capacity for future investments and strategic initiatives.
Nascon’s impressive financial performance is attributed to a combination of factors, including strategic initiatives, market resilience, and strong financial management. The company’s management team has implemented effective strategies to drive revenue growth and optimize operational efficiency, contributing to improved profitability and a stronger balance sheet. Furthermore, Nascon’s ability to navigate market challenges and capitalize on opportunities has played a key role in its success. The company’s proactive approach to debt management has also resulted in a healthier financial position, providing a solid foundation for future growth.
Beyond its financial achievements, Nascon also demonstrated a commitment to sustainability and community development. The company diverted 1.5 tonnes of poly-roll waste from landfills, repurposing it into shopping bags, showcasing a proactive approach to environmental responsibility. In addition, Nascon completed and handed over 12 community projects, reflecting its dedication to social impact and contributing to the well-being of the communities in which it operates. These sustainability and community-focused initiatives highlight Nascon’s holistic approach to business, recognizing its role in environmental stewardship and social development. The company’s managing director, Thabo Mabe, expressed confidence in Nascon’s long-term growth prospects and its commitment to delivering value to shareholders, emphasizing the company’s strategic direction and its dedication to continued success.
