Last Update 02 Nov 25
Fair value Increased 12%Nascon Allied Industries Plc H1 2025 — Exceptional Top-Line Growth Supported by Pricing and Volume Gains
based on Q3 result
Executive Summary
Nascon Allied Industries Plc delivered a strong performance for the nine months ended 30 September 2025, sustaining substantial topline growth and improved profitability supported by higher volume demand and improved price-realization. Revenue surged 47% YoY to ₦117.35 billion, reflecting strong market traction for its consumer products, particularly in the salt and seasoning categories. Gross profit rose 62% YoY to ₦57.18 billion as higher production efficiencies and improved price pass-through supported margin expansion. Profit before tax more than doubled to ₦36.68 billion (9M 2024: ₦13.65 billion), driven by robust operating performance and significantly higher finance income. Profit after tax rose 171% YoY to ₦24.33 billion. Balance sheet strength improved materially, with cash and cash equivalents rising to ₦42.47 billion (FY 2024: ₦24.70 billion), supporting liquidity and readiness for expansion. Retained earnings jumped to ₦60.19 billion (9M 2024: ₦34.64 billion), underpinning strong shareholder value accretion.
Financial Highlights – Statement of Profit or Loss
₦’000 9M 2025 9M 2024 YoY %
Revenue 117,345,167 79,889,547 +47%
Cost of Sales (60,161,688) (44,643,729) +35%
Gross Profit 57,183,479 35,245,818 +62%
Operating Profit 33,242,563 13,643,013 +144%
Finance Income 3,979,906 935,885 +325%
Finance Cost (541,790) (933,766) -42%
Profit Before Tax 36,680,679 13,645,132 +169%
Profit After Tax 24,327,893 8,956,461 +171%
EPS (Kobo) 1,200 442 +171%
Revenue & Operating Performance
- Revenue growth accelerated on stronger volumes across core product lines and effective pricing strategies.
- Gross margin improved to 48.7% (9M 2024: 44.1%) due to enhanced production efficiency and favorable cost management.
- Operating margin expanded significantly to 28.3% (9M 2024: 17.1%).
- Distribution and administrative expenses rose modestly relative to revenue growth, signaling improved operating leverage.
Operational performance continues to be driven by consumer demand recovery and supply chain optimization.
Profitability & Margins
Metric 9M 2025 9M 2024
Gross Margin 48.7% 44.1%
Operating Margin 28.3% 17.1%
PBT Margin 31.3% 17.1%
PAT Margin 20.7% 11.2%
Nascon’s profitability metrics reflect strong cost discipline and enhanced pricing power.
Balance Sheet Summary
₦’000 Sept 2025 Dec 2024 YoY vs Sep 2024
Total Assets 112,478,033 78,502,487 +1% YoY
Cash & Equivalents 42,474,179 24,700,150 +50% YTD
Total Equity 61,978,439 43,055,460 +70% YoY
Borrowings 67,232 2,860,226 -98% YoY
Key Observations
- Cash position strengthened considerably, supporting working capital and expansion.
- Equity base expanded on strong retained earnings growth.
- Borrowings substantially reduced, strengthening leverage position.
Key Ratios & Indicators
Metric Movement
Revenue Growth Strong acceleration
Gross Margin Efficiency gains & pricing strength
Net Margin Strong operational leverage
Liquidity Higher cash reserves
Leverage Substantially lower debt load
Strategic Insights
- Sales growth remains underpinned by strong consumer demand and route-to-market improvements.
- Growing cash reserves and near-zero leverage position support potential capex and distribution decisions.
- Higher finance income reflects better yield on surplus liquidity strategies.
Strengths
- Strong market position in consumer staples
- Significant revenue and profit expansion
- Improved balance sheet and liquidity
- Cost discipline and margin improvement
Risks / Watch Points
- Consumer inflation may pressure volumes and pricing in future periods
- FX exposure on imported raw materials
- Supply chain cost fluctuations
Outlook
Nascon’s performance trajectory is positive, with strong fundamentals and ample liquidity to support continued growth. Sustained volume expansion, operational efficiency, and pricing power provide a solid basis for earnings resilience heading into FY 2025.
The Group remains well-positioned to deliver shareholder value through enhanced profitability and strategic capital deployment.
Analyst View
“Nascon delivered exceptional earnings momentum driven by strong revenue expansion, enhanced pricing strategy, and improved cost efficiencies. With strengthened liquidity, minimal leverage, and robust demand outlook, the Group is poised for continued growth.”
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Disclaimer
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