Nascon Allied Industries Plc has kicked off 2025 with a stellar performance, recording a 515% YoY surge in pre-tax profit to N11.31 billion in its unaudited Q1 results. This strong showing not only outpaces expectations but also sets the tone for what could be a record-breaking year for the food processing giant.
Revenue Strength and Regional Dominance
Revenue climbed 77.21% YoY to N41.85 billion, driven predominantly by a robust performance in the northern region, which accounted for over 86% growth and contributed more than 77% of total revenue. This regional strength is indicative of successful market penetration and sustained demand in Nascon’s key operating zones.
Cost Pressures Persist but FX Relief Provides Cushion
Cost of sales rose 92.26% YoY to N23.96 billion, largely due to rising raw material costs, which make up over 87% of total input costs. The company also anticipates continued high distribution expenses, adding to operational strain. Despite this, Nascon managed a 60.39% YoY increase in gross profit to N17.90 billion, aided significantly by a sharp drop in foreign exchange losses—from N3.06 billion in Q1 2024 to just N55.38 million in Q1 2025.
Efficient Cost Management and Surging Net Finance Income
Nascon kept a lid on overheads, with selling and distribution expenses rising only 2.51% YoY. More impressively, net finance income ballooned by 1,359.37% YoY to N887 million, helping to further boost bottom-line figures. These cost efficiencies, alongside reduced interest burdens, have powered a 515.02% YoY increase in profit after tax to N7.578 billion—already 48.63% of full-year 2024 profit in just one quarter.
Healthy Balance Sheet and Improved Capital Structure
Total assets expanded by 17.17% to N25.01 billion, while cash and cash equivalents rose by 30.25%, underscoring a strong liquidity position. More notably, equity grew 76.40% to N50.63 billion, now accounting for 55.73% of total assets, reflecting a solid capital base and reduced reliance on debt. Nascon’s borrowings dropped sharply to N1.145 billion, down from N3.696 billion in December 2024, contributing to lower interest expenses and improving the interest coverage ratio.
Impressive Market Performance
The stock has delivered outstanding returns, up 68.9% year-to-date, ranking it 11th on the NGX, and 8th best performer over the last month with a 20% gain. Its solid dividend history—N2 per share in FY 2024, with a 3.78% yield—adds to its attractiveness for income-focused investors.
Conclusion: Nascon’s Q1 2025 results reflect operational excellence, financial discipline, and strategic positioning in key markets. While input cost volatility remains a watchpoint, robust revenue growth, improved capital structure, and strong cash flow generation position the company well for sustained earnings momentum. Should this trajectory continue, 2025 could be a landmark year for Nascon and its shareholders.
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