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NASCON shareholders okay 115% dividend raise to N3.97bn

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By Peter Egwuatu

SHAREHOLDERS of  NASCON Allied Industries Plc, a subsidiary of Dangote Group, have unanimously approved a dividend payout of N3.97 billion for the financial year ended December 31,2017, representing an increase of 115 percent from N1.85 billion declared in 2016.

The dividend translates to N1.50 per share as against 70 kobo per share paid in 2016. The shareholders also approved all the proposed resolutions by its Board of Directors for the 2017 financial year at the Annual General Meeting, AGM, in Lagos.

The shareholders tasked its Board of Directors to reduce the growing unclaimed dividend, while advising that the names of unclaimed dividend should be disclosed in subsequent annual report. Addressing shareholders at the meeting, the Chairperson, NASCON Allied Industries Plc, Yemisi Ayeni, stressed that the company is committed to good corporate governance as it has taken steps to further improve on it and to propel the company to greater heights.

According to her: “ The board committees held all necessary meetings in accordance with the Securities and Exchange Commission, SEC’s code of corporate governance and carried out an extensive review of the company’s short and long term strategy, culminating in a detailed strategic plan.”

Commenting on the financial performance, the Chief Financial Controller, NASCON Allied Industries Plc, Aderemi Saka, said: “2017 was a rebound year for the Nigerian economy and the positive macro-economic trends resulted in a robust year for NASCON. We increased total revenue by 48 percent to N27.06 billion from N18.29 billion in 2016; salt revenue increased by 50 percent to N22.25 from N14.82 billion driven primarily by price increase per bag in first quarter, Q1. Operating profit in 2017 was N7.63 billion, an increase of 100 percent over N3.82 billion in 2016.

Due to improved efficiencies, operating margin increased to 28 percent in 2017 compared to 21 percent in 2016. In 2017, cost of sales increased by 38 percent to N17.07 billion from N12.38 billion in 2016. The major drivers were direct materials, depreciation and external haulage.”

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