NASCON Allied Industries Plc reported a profit before tax of N29.70 billion for the first half of 2026, representing a 27.59% year-on-year increase, as stronger operating margins, higher finance income and lower borrowing costs boosted an otherwise modest revenue growth.
- +NASCON grew sales 4%, profit jumped 28%. Something changed
The salt producer posted revenue of N81.16 billion, up 3.84% from N78.16 billion recorded in the corresponding period of 2025.
The salt producer posted revenue of N81.16 billion, up 3.84% from N78.16 billion recorded in the corresponding period of 2025.
Profit after tax also rose 25.68% to N19.60 billion during the period, according to the company’s unaudited financial statements for the six months ended June 30, 2026, filed with the Nigerian Exchange (NGX) on Wednesday, July 29, 2026.
The improved earnings came despite modest revenue growth, with turnover increasing 3.84% to N81.16 billion, while gross profit climbed 9.15% to N40.81 billion.
Basic earnings per share rose 25.74% to 1,451 kobo from 1,154 kobo, while shareholders’ equity increased 4.76% to N74.57 billion.
The company’s earnings growth significantly outpaced revenue growth as production costs declined despite higher sales.
However, administrative expenses grew faster than revenue, rising 21.10% to N5.48 billion, while tax expense increased 31.46% to N10.10 billion, reflecting the company’s stronger earnings performance.
Despite these cost pressures, improved margins, higher finance income and lower financing costs ensured profit before tax expanded much faster than revenue.
Total assets increased 19.45% to N161.56 billion from N135.27 billion at December 2025, driven mainly by higher trade receivables and cash balances.
Borrowings remained negligible at N64.74 million, underscoring the company’s conservative funding structure and limiting exposure to higher interest rates.
Shareholders’ equity increased 4.76% to N74.57 billion, supported by retained earnings of N72.78 billion, although growth was moderated by N16.21 billion paid as dividends during the period.
NASCON’s shares closed unchanged at N200.00 on Wednesday, July 29, indicating investors had yet to fully price in the earnings release.
The stock had previously climbed to about N222 in mid-May before retreating to around N180 during the June market correction.
Despite the pullback, NASCON has gained approximately 86.1% year-to-date, rising from its opening price of N107.50 at the start of 2026, making it one of the Nigerian Exchange’s stronger-performing consumer goods stocks this year.
The company’s H1 performance reflects improving operating efficiency. Despite single-digit revenue growth, NASCON recorded stronger profitability as production costs eased.
