NASCON Allied Industries (Dangote Salt as it was prior known) had strong topline growth in the financial year 2024. Profit grew at a much slower pace due to higher costs.

Shareholders have reason to cheer as the company hiked its dividend payout by 100%. 

About the firm 

The Company was incorporated on April 30, 1973 as a limited liability Company. The principal activities of the Company include the processing of raw salt into refined, edible and grade salt. The Company also produces seasoning cubes.

Revenue 

Revenue rose by 48.9% year on year. From N80.8 billion in 2023 to N120.3 billion in 2024. There is no information on volumes so it is hard to determine if the rise was driven by volumes or higher pricing. Or both.

Product and geographic splits

Revenue is from two segments. Salt and seasoning. Salt segment grew revenue at a faster pace. 

The salt segment generated N112 billion in revenue. Up 49.4% year on year.

Seasoning revenue generated N7.4 billion in revenue. Up 41.8% year on year. 

In terms of geography, revenue is split into three: North, West and East.

Northern sales grew the fastest.

Profit after tax 

Profit after tax grew at a much slower pace due to higher costs. It increased by 13.5% from N13.7 billion in 2023 to N15.5 billion in 2024.

Cost squeeze

Cost of sales and admin expenses grew faster than revenue

The former moved up by 77%. From N36.5 billion in 2023 to N64.8 billion in 2024 

Admin expenses increased by 47%. From N4.7 billion in 2023 to N6.9 billion in 2024

Cost of sales growing faster than revenue means gross profit margins were squeezed. 

What’s there for shareholders?

The company has proposed a final dividend of N2 per share. That’s a 100% increase from the N1 it paid for the 2023 final year.

Qualification date for the dividend is April 16, 2025 and payment date is May 9, 2025.

It also amounts to a payout ratio of 34.6%, as the firm earned N5.77 during the period. 

The company did not pay an interim dividend for the 2024 financial year.