Nascon Allied Industries Plc has reported a remarkable 77 percent growth in its revenue for the first quarter of 2025. According to the company’s unaudited financial report for the period ending March 31, 2025, filed with the Nigeria Exchange Limited, Nascon’s revenue from contracts with customers reached N41.9 billion, up from N23.6 billion in the same period last year. This increase reflects the company’s strong performance in the first quarter.
Nascon’s gross profit also saw a significant rise, increasing by 60 percent to N17.9 billion in Q1 2025, compared to N11.2 billion during the same period in 2024. This growth in gross profit can be attributed to the company’s efforts to streamline its production processes and improve its operational efficiency. By leveraging economies of scale, Nascon was able to lower its cost of sales to N23.96 billion from N12.46 billion in Q1 2024, while still maintaining strong revenue growth.
Despite the strong revenue and profit performance, Nascon faced some challenges in managing its operating expenses. Distribution costs increased slightly to N5.12 billion, up from N4.99 billion in the same period last year, reflecting the higher logistics costs associated with increased production and sales. Administrative expenses also saw a significant rise, climbing to N2.06 billion from N1.43 billion, mainly due to the company’s investments in technology and human resources to support its growing operations.
However, despite these higher operating costs, Nascon’s operating profit surged to N10.42 billion, a substantial increase from the N1.78 billion recorded in Q1 2024. This sharp rise in operating profit reflects the company’s ability to convert higher revenues into earnings, thanks to effective cost control and better production efficiency. Nascon’s profit before tax also rose sharply to N11.31 billion from N1.84 billion last year, a more than 500 percent increase.
The company’s strong earnings were further boosted by finance income, which increased to N1.1 billion from N418.7 million in Q1 2024. This rise was due to higher interest income from investments. Despite the increase in profits, Nascon’s tax expense for the period also grew, standing at N3.73 billion compared to N606.87 million last year.
Despite the higher tax burden, Nascon’s overall profitability remained strong, with a profit after tax of N7.58 billion in the first quarter of 2025. This represents a dramatic 515 percent increase over the N1.23 billion reported in Q1 2024, highlighting the company’s impressive financial performance.
Nascon’s earnings per share (EPS) for the period rose to 374 kobo, up from 186 kobo in the same quarter last year. The significant growth in EPS is a sign of the company’s improved profitability, which is expected to benefit its shareholders. Investors are likely to see returns from the company’s strong earnings trajectory as Nascon continues to capitalize on favorable market conditions.
During the period, Nascon’s total assets grew by 7 percent to N90.8 billion, compared to N84.8 billion in Q1 2024. This growth was largely driven by an increase in cash and cash equivalents, which surged to N37.91 billion, up from N15.7 billion last year. Nascon’s total equity also saw a significant increase, rising to N50.63 billion from N28.7 billion in March 2024. The growth in equity was mainly driven by retained earnings, which stood at N48.85 billion at the end of Q1 2025, compared to N26.95 billion in 2024.
On the liabilities side, Nascon’s total liabilities decreased to N40.18 billion from N56.1 billion in the previous year. The reduction in liabilities reflects the company’s efforts to reduce its short-term borrowings and manage its debt more effectively. As of the end of Q1 2025, Nascon’s borrowings stood at N1.11 billion, down from N3.93 billion in Q1 2024, highlighting its improved liquidity position.
Nascon’s cash flow from operating activities showed significant improvement, with net cash generated from operations increasing to N14.39 billion, compared to a negative cash flow of N8.35 billion in Q1 2024. This improvement in cash flow is a direct result of the company’s higher profitability and better management of working capital.
Nascon’s cash and cash equivalents at the end of the period stood at N37.91 billion, reflecting the company’s strong financial position despite higher expenses and tax obligations. The company also made repayments of N1.72 billion in borrowings and paid interest of N125.8 million on its borrowings. Despite these outflows, Nascon’s cash position improved, ensuring a solid foundation for its continued growth.
