Nascon Allied Industries Plc experienced a remarkable financial surge in the first quarter of 2025, reporting a 77% year-on-year increase in revenue from contracts with customers. This impressive growth propelled revenue to N41.9 billion, significantly surpassing the N23.6 billion recorded in the same period of 2024. This substantial increase can be attributed to a combination of factors, including favorable market conditions, increased demand for Nascon’s products, and strategic initiatives implemented by the company to boost sales and expand market share. The company’s focus on operational efficiency and cost optimization played a crucial role in translating this revenue growth into improved profitability.
This revenue surge translated into a significant improvement in gross profit, which climbed by 60% to N17.9 billion in Q1 2025, compared to N11.2 billion in the previous year. This leap in profitability underscores Nascon’s ability to effectively manage its cost of sales, which, despite also increasing, did so at a slower rate compared to revenue. The company successfully leveraged economies of scale, allowing it to absorb some of the rising input costs while simultaneously expanding its production to meet the growing demand. This strategic approach to cost management ensured that a larger proportion of the revenue increase flowed through to the bottom line, boosting the company’s overall profitability.
While Nascon excelled in revenue generation and gross profit, the company also experienced increases in its operating expenses. Distribution costs rose modestly to N5.12 billion, up from N4.99 billion in Q1 2024, a reflection of the higher logistical demands associated with increased sales and distribution. Administrative expenses also saw a more substantial increase, reaching N2.06 billion compared to N1.43 billion in the previous year. This rise is attributed to strategic investments in technology and human capital, necessary to support the company’s expanding operations and ensure its continued growth trajectory.
Despite the rise in operating expenses, Nascon’s operating profit soared to N10.42 billion in Q1 2025, a dramatic increase from N1.78 billion in the corresponding period of 2024. This significant improvement demonstrates the company’s ability to convert its top-line growth into substantial operating earnings. The robust revenue growth, coupled with efficient cost control measures and enhanced production processes, significantly outweighed the increased operating expenses, leading to a substantial boost in operating profit. This positive trend indicates the company’s effective management and its ability to capitalize on market opportunities.
Nascon’s robust financial performance continued down the income statement. Profit before taxation reached N11.31 billion, a remarkable surge from N1.84 billion in Q1 2024. This impressive growth was further fueled by an increase in finance income, which rose to N1.1 billion from N418.7 million in the previous year, primarily driven by higher interest income from investments. Even after accounting for a significantly higher tax expense of N3.73 billion, compared to N606.87 million in Q1 2024, the company’s profit after tax reached N7.58 billion, a staggering 515% increase from N1.23 billion in the same period of the prior year. This substantial profit growth clearly demonstrates the effectiveness of Nascon’s operational and financial strategies.
Further indicators of Nascon’s financial health include a significant improvement in cash flow from operating activities, which generated N14.39 billion in cash, compared to a negative cash flow of N8.35 billion in Q1 2024. This positive shift is a direct result of the company’s enhanced profitability and more efficient working capital management. The company also experienced growth in total assets and equity, reaching N90.8 billion and N50.63 billion, respectively, by the end of Q1 2025. This growth reflects the company’s successful financial performance and strategic investments. Simultaneously, Nascon reduced its total liabilities to N40.18 billion, down from N56.1 billion in Q1 2024, indicating prudent debt management and an improved liquidity position. Overall, Nascon’s Q1 2025 results showcase a company experiencing robust financial growth, marked by significant improvements in revenue, profitability, and cash flow. This strong performance positions the company favorably for continued success in the future. The reported 49% increase in revenue to N120.4 billion for the full financial year 2024 further supports this positive outlook, suggesting a sustained upward trajectory for Nascon’s financial performance.
