BY NKIRUKA NNOROM

The Chairman of National  Salt Company of Nigeria Plc (NASCON), Alhaji Aliko Dangote, has reaffirmed the management’s commitment towards retaining a leading edge over other competitors in the salt industry.

Making the remark in his address to shareholders of the company in the yearly general meeting, in Lagos, Dangote said the management would also commit itself to delivering improved returns to all stakeholders in the current year.

Dangote explained that the company will within the year expand its business to include vegetable oil refinery and tomato packaging in order to retain key role in the sector. “We continue to be committed to improving our upward trend, and we will ensure your company continues to grow and remain competitive so as to deliver increasing dividend to all stakeholders.

“To this end, your Board and management are working on establishing a seasoning business, vegetable oil refinery and tomato packaging operations, which unfortunately has been delayed for a while,” he stated.

He noted that the establishment of the new business line was in keeping with the company’s vision of becoming a frontline foods business in the country.

He further explained that the company achieved profit after tax of N2.2 billion for the year ended 31st December 2011, which reflects 30.7 per cent growth over N1.65 billion posted in the same period of 2010. Turnover grew by marginal 8.9 per cent to N9.7 billion from N8.89 billion reported in 2010, while operating profit rose to N3.1 billion from the previous N2.06 billion.

According to him, the performance is a reflection of the efforts of the board, management and staff in response to the difficulties experienced in the year, thus leading to a stronger and more profitable business.

Speaking on the challenges encountered by the company within the year, Dangote said that problems pertaining to energy, poor infrastructure as well as uncoordinated tax administration contributed in preventing NASCON and other manufacturers in reaching their full potential, adding “most importantly, NASCON was severally impacted by the global raw salt shortages that characterized the year leading to a 20 per cent reduction in our normal import level.”

The shareholders at the meeting approved the distribution of N1.89 billion, which represents 70 kobo per share dividends for the period.

Other highlights of the results showed that shareholders fund grew to N5.78 billion from N4.96 billion, while the earnings per share rose to N81 from N61 in 2010.