Africa’s richest man Aliko Dangote’s seasoning business posts $14.4 million half-year profit

Nascon Allied Industries Plc, the Nigerian salt and seasoning producer majority owned by Africa’s richest man Aliko Dangote, reported a sharp rise in first-half earnings after stronger margins and lower finance costs more than made up for modest sales growth.

The company posted profit after tax of N19.6 billion ($14.4 million) for the six months ended June 30, up 26 percent from N15.5 billion ($11.3 million) a year earlier. Revenue increased 4 percent to N81.2 billion ($59.5 million) from N78.2 billion ($57.3 million), while profit before tax climbed 28 percent to N29.7 billion ($21.8 million), underscoring the company’s ability to lift earnings even as revenue growth remained moderate.

Improved profitability was supported by better operating performance across the business. Gross profit rose 9 percent to N40.8 billion ($30 million) from N37.4 billion ($27.4 million), lifting the gross profit margin to 50 percent from 48 percent a year earlier. Operating profit increased 15 percent to N24.5 billion ($18 million), while EBITDA grew 6 percent to N24.1 billion ($17.65 million). EBITDA margin edged higher to 30 percent from 29 percent.

Efficiency drives higher earnings growth

Finance income also strengthened, more than doubling to N5.35 billion ($3.9 million) from N2.37 billion ($1.73 million). At the same time, finance costs fell to N172 million ($0.13 million) from N413 million ($0.3 million), helping drive the stronger bottom-line performance. Earnings per share rose 26 percent to N14.51 from N11.54.

Managing Director Aderemi Saka said the results reflected steady demand across Nascon’s core product lines and the company’s focus on improving efficiency. He said disciplined cost management and tighter control of operating expenses enabled profit growth to outpace revenue during the period. 

Saka also pointed to Nascon’s inclusion in the Nigerian Exchange’s NGX 30 Index following the exchange’s half-year review, describing it as recognition of the company’s market position. The index tracks 30 of the largest and most actively traded companies listed on the NGX.

Dangote-backed Nascon boosts financial strength

Nascon is Nigeria’s leading producer and distributor of refined salt and also manufactures seasoning products. The company operates production facilities in Apapa, Lagos; Ota, Ogun State; and Port Harcourt, Rivers State, and is part of the Dangote Group.

Dangote owns 62.2 percent of Nascon’s issued share capital, giving him a stake valued at about $263 million. The investment forms part of the business empire that has helped build his estimated $35.2 billion fortune, making him Africa’s richest person.

The company’s financial position also improved during the period. Total assets rose 45 percent to N161.6 billion ($119 million) from N111.6 billion ($81.75 million) a year earlier, while total equity increased 40 percent to N74.6 billion ($54.6 million). Cash and cash equivalents climbed to N46.1 billion, giving the company additional financial flexibility to support future investment.