NASCON Allied Industries Plc, a subsidiary of Dangote Industries Limited, recorded a drop in its profits (before & after-tax), according to the financial statement ended June 2021.
According to the report made available to Brand Spur, Nascon Allied Industries’ Profit before tax declined by 6% YoY to N2.13bn in H1 2021 (Q2 2021: -21% YoY; Q1 2021: +15% YoY) while Profit after tax declined by 3% YoY to N1.45bn in H1 2021.
Nascon’s Revenue grew by 21% YoY to N17.57bn in H1 2021 (Q2 2021: +21%; Q1 2021: +21%).
In Q2 2021, Profit before tax declined by 21% YoY to N1.07bn in Q2 2021, on account of the incurred costs and expenses mentioned above, while profit after tax declined by 15% YoY to N727mn in Q2 2021 due to a lower effective tax rate in Q2 2021 (32% versus 37% in Q2 2020).
In terms of revenue, the company recorded a 21% YoY revenue growth to N9.23bn, attributable to a consolidation of the Company’s efforts in expanding market share.
The Company incurred a N165m net FX loss in Q2 2021. Operating profit margin declined by 700 basis points to 12% in Q2 2021 from 19% in Q2 2020.
Operating profit declined by 24% YoY to N1.07bn in Q2 2021, resulting from higher operating expenses. Administrative expenses grew by 34% YoY to N690mn while selling and distribution expenses rose by 16% YoY.