NASCON pays N1.1b dividend

 

 

NASCON Allied Industries Plc has ended the 2020 financial year on a positive note with expectations that its new state-of-art salt refinery will boost revenue and returns to shareholders.

At the 2020 Annual General Meeting (AGM) at the Civic Centre, Lagos at the weekend, the company announced an improved turnover of N28.01 billion, representing a two per cent increase from N27.49 billion recorded in 2019.

In its 2020 annual report themed ‘Protecting our core’, the company, for the financial year ended December 31, 2020 also recorded N2.69 billion in profit after tax, a 46 per cent increase for the year, compared to N1.85 billion the previous year. Earnings per share also increased to N1.02 in 2020 compared to 70 kobo in 2019.

Shareholders approved dividend payment of 40 kobo per share, totalling N1.06 billion.

Chairperson, NASCON Allied Industries, Mrs. ‘Yemisi Ayeni, said last year, many manufacturing businesses faced numerous challenges from COVID-19 and the resulting downturn.

“While I strongly believe that these are short-to-medium term, we have taken decisive measures to ensure stakeholder expectations are continually satisfied. We are confident that our business model will enable us to successfully navigate global changes while seizing opportunities to continually create value for our stakeholders.’’

“2020 was a challenging year for our business and the world in general. Yet it was also a year that provided our business the opportunity to review service delivery processes, reposition the salt business based on our additional capacity, and focus on our distribution models. It is the long-standing trust and loyalty of our shareholders that has allowed us to implement our long-term vision and benefit from the resilience it brings”, Ayeni  said

Managing Director, NASCON Allied Industries Plc, Mr. Paul Farrer said the major challenge in the Nigerian business environment in 2020 was the outbreak of the COIVD-19 pandemic resulting in major job losses and reduced income, across the country and a looming global recession which experts say may be one of the worst global recessions in recent history.

“Despite the diverse challenges faced during these trying times, we continue to demonstrate our resilience and optimism into 2021. We are focused on maximising the gains from our capacity expansion, human capital development, operational efficiency and aggressive trade in all market segments.

“In terms of market expansion, we have heavily invested in our new salt refinery. This is a state-of-the-art refinery plant, using best practices to produce high quality products for our discerning customers. The future for NASCON looks very bright. We have installed our new salt refinery and as a result, established a strong platform for future growth.

“I want to specifically thank our trade partners, consumers, suppliers, team members and strategic stakeholders for contributing to our success story in 2020. We look forward to continuing these mutually beneficial relationships in the future,” Farrer said.

Also, the Executive Director, Commercial, NASCON Allied Industries, Fatima Aliko-Dangote, noted that the COVID-19 restrictions affected  route-to-market, but the company is constantly engaging customers to improve its productivity.

According to her, although the bulk of volume is consumed in the north, the investment in the new salt refinery will increase productivity and our coverage of the other regions.

One of the shareholders at the meeting, Sir Sunny Nwosu, acknowledged that the dividend for the year 2020 was more than that of last year. He also appreciated the corporate governance structure and the commitment of the management to the affairs of the company. He hailed the issue of reduced borrowing as a good sign, and called for a wider geographical spread of the revenue base, to the East and West of the country.

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