NASCON ALLIED INDUSTRIES : NASCON ALLIED INDUSTRIES PLC - Q1 2024 EARNING RELEASE

Q1 2024 UNAUDITED RESULTS

NASCON Allied Industries Plc 30th April 2024

UNAUDITED RESULTS FOR THREE MONTHS ENDED 31st MARCH, 2024

Strong Revenue up 40% at ₦23.6B

Gross profit up 61% at ₦11.2B

EBITDA up 74% at ₦5.3B

Lagos, 30th April 2024: NASCON Allied Industries Plc announces unaudited results for the period ended 31st March 2024.

Financial highlights

• Revenue up 40% to ₦23.6B
• Gross profit up 61% to ₦11.2B; 47% margin
• EBITDA up 74% to ₦5.3B; 22% margin
• Profit before tax down 24% to ₦1.8B
• Profit after tax down 25% to ₦1.2B
• Earnings per share down 25% at ₦1.86

Operational highlights

• Volume growth of 10% on prior year
• Combined operational utilization of 84%

Thabo Mabe, Managing Director, said:

"Spurred by strong operational performance, and despite inflationary cost pressures, we achieved remarkable revenue growth of 40% to ₦23.6 billion. The revenue growth resulted from volume growth and strategic pricing actions influenced by rising input costs. Gross profit grew by 61% while EBITDA rose by 74% to ₦5.3 billion. Our customer-centric approach and strategic cost management resulted in these favourable outcomes.

Currency devaluation resulted in an extraordinary foreign exchange loss of ₦3.0 billion which depressed PAT to ₦1.2 billion, a 25% decline from the previous year. The operational business environment is challenging but we are confident that we are executing a robust strategy that will ensure we surpass our prior year achievements.

In spite of the uncertain market conditions, we remain assured in our ability to navigate the evolving business landscape and capitalize on opportunities for growth in the most essential foods category."

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About NASCON Allied Industries Plc

NASCON Allied Industries Plc is Nigeria's leading refiner and distributor of household, food processing and industrial-use salt. The company has since evolved to include Seasoning production. It has facilities in Lagos State (Apapa), Ogun State (Ota), and Rivers State (Port Harcourt).

The Apapa refinery, located in the Apapa Port of Lagos, was commissioned in 2001. The Port Harcourt refinery located in the sea-port in Rivers State was commissioned in 2003. The former Oregun plant, commissioned in 2004 to produce refined salt, was converted to a fleet workshop in 2021 with the commissioning of the new state-of-the-art refinery at Salt Village, Apapa.

We made a strategic decision in 2011 to grow the company through new product lines. We took advantage of our existing site in Ota and we commissioned a state-of-the-art Seasoning plant in 2014. Our plants are primarily powered through the National Grid supported by gas and diesel-fueled generators, with combined capacity to generate 6.1MW of power.

A member of the Dangote Group of companies, NASCON is squarely committed to achieving the mission and vision of the Group through our products and every interaction.

Website:https://nascon.dangote.com/

Twitter: @DangoteSalt

Contact details:

Morayo Tukuru

Head of Investor Relations NASCON Allied Industries Plc [e-mail] [e-mail]

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Summary of key performance indicators

INCOME STATEMENT		Q1 2024			Q1 2023
	₦ M			₦ M		CHANGE
Revenue		23,618			16,901		40%
Cost of sales		12,461)		(9,949)	25%
Gross profit		11,158			6,952		60%
GP Margin		47%		41%
Other income		102		83	23%
Other operating gains/(losses)		(3,056)		-		n/a
Distribution costs		(4,994)		(3,470)	44%
Administrative expenses		(1,431)		(1,014)	41%
Operating profit		1,778			2,551		-30%
EBITDA		5,287			3,038		74%
EBITDA Margin		22%		18%
Interest received		419		141	196%
Interest paid		(358)		(259)	38%
Profit before taxation		1,839			2,434		-24%
PBT Margin		8%		14%
Taxation		(607)		(791)	-23%
Profit for the year		1,232			1,643		-25%
Earnings per share (kobo)		186			248		-25%
FINANCIAL POSITION		Q1 2024			Q1 2023
	₦ M			₦ M		CHANGE
Property, plant and equipment		11,649		12,126	-4%
Right of use assets		4,064		3,858	5%
Non-Current Assets		15,713		15,984	-2%
Other Current Assets		53,392		27,289	96%
Cash and cash equivalents		15,697		15,904	-1%
Current Assets		69,089		43,193	60%
Total Assets		84,802			59,177		43%
Total Equity		28,704			20,686		39%
Non-Current Liabilities		6,415		6,069	6%
Current Liabilities		49,682		32,422	53%
Total Liabilities		56,098			38,491		46%
Total Equity and Liabilities		84,802			59,177		43%
CASH FLOWS		Q1 2024			Q1 2023
	₦ M			₦ M		CHANGE
Cash and cash equivalent at beginning of period		25,613			13,006		97%
Net cash from operating activities		(8,346)		4,732	-276%
Net cash from investing activities		379		(48)	-888%
Net cash from financing activities		(1,949)		(1,786)	9%
Cash and cash equivalent at end of period		15,697			15,904		-1%

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