NASCON Allied Industries yesterday released its results for the half year ended June 2025.

About the firm

NASCON Allied Industries is informally known as Dangote Salt since Aliko Dangote through Dangote Industries Limited (DIL) is the core shareholder.

The principal activities of the company include, the processing of raw salt into refined, edible and grade salt. The company also produces seasoning cubes.

I group all the firms together into the D3 stocks

.Dangote Sugar

Dangote Salt

Dangote Cement 

NASCON ALLIED H1 2025 results

There was a big bounce in revenue and profit. 

N78.1 billion revenue up 54% from last year

N15.5 billion in profit after tax. up over 200% from last year.

What i liked most aboiut the numbers were the higher profit margin. Company had net margins of 19% meaning for every N100 in revenue made during the period, N19 was profit.

Northern revenues rose strongly.

The bounce in revenue was noticeable in the north. About 77% of revenue is in the north. Yall dont take salt elsewhere? 

FY 25 earnings and forecast/one year target price

To my forecast. The strong numbers mean i had to revise my forecast 

At its current run rate, i think the company will end the year with at least N20 in earnings per share.

If you apply an 8X mulitple, it means the stock should be trading at N160.

The stock is currently trading at N103.5 So that’s a potential upside of 60%.

Dividend forecast

For FY 24, the company paid a N2 dividend, 34.6% of its earnings. 

For FY 25, i think the company wll pay a N10, that would be about 50% of my estimate for earnings.

In terms of dividend yield, at current price, that would be a dividend yield of about 10%. Which isnt too bad. 

As always, please note, that this isnt investment or trading advice. These are just my thoughts.