NASCON benefits from increased capacity as assets hit N34.94 billion

A major player in the Consumer Goods sector, NASCON Allied Industries, recorded an increase in its total assets while maintaining an enhanced installed capacity, according to an unaudited fourth quarter results released on the floor of the Nigerian Stock Exchange (NSE).

The unaudited fourth quarter report of the company as of December 31, 2019 showed that the total assets rose to N34.94 billion from N30.27 billion in the corresponding period of the preceding year, while revenue also rose to ₦27.58 billion compared to ₦25.65 billion from the previous year.

In a move that analysts at Cordos Securities described as targeting more market share in the food sector through increased product range and innovation, the company recently increased its installed production capacity to 567,000 metric tonnes per annum from its Apapa, Port Harcourt and Oregun plants.

While the Apapa refinery, located in the Apapa Port of Lagos, has an installed capacity of 275,000 metric tonnes per annum; the Port Harcourt refinery located in the seaport in Rivers State has an installed capacity of 210,000 metric tonnes per annum, and the Oregun plant’s installed capacity stands at 82,000 metric tonnes of salt per annum.

Managing Director, NASCON, Paul Farrer said the company, which has demonstrated resilience in the challenging environment, is strongly focused on capacity growth and increased market penetration. He disclosed that the company would be leveraging on a number of synergies including improved output in terms of quality, quantity, and business efficiency to deliver value for all stakeholders.

On the new products, he said, “…we launched the Dangote Stew Mix, Dangote Curry, and Dangote Classic seasoning. These three products are part of a wider product enrichment plan to diversify our product portfolio. The products were specifically developed to meet and surpass the needs of our consumers across the country. Each of these products has been tailored to suit the local taste and cooking habits of the different regions in Nigeria. We would continue to differentiate ourselves in our product category by consistently delivering high quality, nutritious products.”

Farrer, said the company made a strategic decision in 2011 to grow through new product lines and changed its name to NASCON Allied Industries in 2014 from National Salt Company of Nigeria to reflect its new positioning. “We took advantage of our existing site in Ota and construction activities commenced in 2012. We commissioned the Seasoning plant in 2014 with an installed capacity of 5,016 metric tonnes per annum as of 2018. The Tomato Paste packaging plant, which is designed to produce and package Tomato Paste from tomato concentrate was commissioned in 2015 with an installed capacity of 37,440 metric tonnes. The Vegetable Oil refinery was commissioned in 2015 and can produce 156,000 metric tonnes of refined vegetable oil from crude palm oil”, he added.

He stated that the company has the mandate to continue to introduce more products to meet the growing needs of consumers in Nigeria. “In 2018 we launched the Dangote Stew Mix, Dangote Curry and Dangote Classic Seasoning. These three products are part of a wider product enrichment plan to diversify our product portfolio. The products were specifically developed to meet and surpass the needs of our consumers across the country. Each of these products has been tailored to suit the local taste and cooking habits of the different regions in Nigeria. We would continue to ensure that we differentiate ourselves in our product categories by consistently delivering high quality, nutritious products”, he added.

He disclosed that the company’s investment focus in the coming years would be dedicated towards offering consumers premium products in all its segments, which include positioning new seasoning products to provide an assortment of savory taste experiences with regionalized flavors.

Dwelling on the various products from NASCON’s portfolio, Farrer explained: “Our Seasoning is presently available in chicken and beef flavour variants. We have expanded our offerings inline with consumer needs, with the new Classic Seasoning cubes, Stew Mix and Curry powder.

He said the company remains positive about its business and will retain its focus on implementing a sustainable expansion strategy. “During the year, we would continue to drive new seasoning products, whilst constantly engaging our stakeholders. In respect of our core salt business, we are excited about our significant investment in expanding our refined capacity while leveraging on our brand dominance. This capacity would be focused on driving volumes in both the sachet and corporate segments of the market”, he added.