Nascon Allied Industries Plc (‘the Company’) reported a revenue growth of 48% year-on-year to N21.26bn in its unaudited Q2 2023 financials. The stellar performance was driven by price increases and higher volumes, particularly in the Northern region. Across its business regions, revenue from the North (72% of revenue) grew by 55% year-on-year. In the same vein, revenue from the West (22% of revenue) and the East (6% of revenue) regions maintained the momentum witnessed in Q1 2023 with revenue growing by 22% and 83% respectively.

A distinguishing feature of Nascon’s performance compared to most Fast Consumer Goods Sector (FMCG) companies was its ability to report an insignificant foreign exchange loss of N69,000, unlike most consumer goods sector. This signifies majority of its borrowings were locally funded.

Profit before tax and after tax grew 261% year on year respectively. This marks a very good financial performance in Q2 2023. The profit after tax margin rose to 20% in Q2 2023.


Nascon’s Q2 2023 financial performance was significantly above what we expected. Although we expected the Company to increase prices, the magnitude of the actual price increase was higher than our expectations. The material decline in the Company’s cost margin evidenced this. As a result, we revised our revenue expectation to N84.99bn (previously: N73.95), also we expect FY 2023 net margin to expand to 17.40% from 9.30% in FY 2022.

On the 31st of July 2023, Dangote Sugar, Nascon and Dangote Rice Limited notified the general public of its proposed mergers to “Dangote Foods Plc” as they believe the action will consolidate and solidify the Group market position and ultimately reposition the Group to harness future opportunities in the Food industry. The merger between its subsidiaries will proceed via a scheme of consideration, eleven (11) ordinary shares in Dangote Sugar will be given for every twelve (12) Nascon shares held.

Please follow the link “Effective Pricing and Cost Optimisation Delivers Strong Margins” to view the whole report.

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