The management of NASCON Allied Industries (formerly National Salt Company), a member of the Dangote Group released its financials for the year ended December 31, 2018 as it rewarded its shareholders.
The company proposed a final dividend of N1 per ordinary share of 50 kobo subject to the appropriate tax withholding and approval. The dividends’ will be paid to the shareholders whose names are in the Register of members as at the close of business on May 30, 2019.
Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval. However, it is not obligatory for a company to pay a dividend. A dividend is usually a part of the profit that the company shares with its shareholders.
NASCON has paid dividends to its shareholders for over six years. The company is not only a good dividend stock, it also rewards investors in terms of capital appreciation and has demonstrated a capacity to reward shareholders over a long period of time.
For the year 2018, revenue of the company stood at N25.8 billion, lower than N27.1 billion in full year, 2017. Profit after tax for year stood at N4.4 billion.
A further breakdown showed that sale of salt remained its biggest business, contributing N20.761 billion, down from N22.247 billion in 2017, out of which N12.565 billion was incurred in cost of sales, as against N11.62 billion in prior year, leaving segment profit of N8.195 billion from N10.627 billion. It was followed by freight income of N4.084 billion, compared to the previous N3.858 billion, incurring N4.442 billion costs in the process, resulting in a loss of N500.245 million, down from N583.36 million a year earlier. The seasoning segment was however better than freight business, contributing N924.167 million income, N839.022 million cost that left segment profit at N85.145 million; which was a far cry from the profit of N125.732 million recorded in 2017 from a lower revenue of N765.295 million and N639.564 million sales cost. The vegetable oil segment did not contribute to the top and bottom-line in 2018, unlike in 2017, when it contributed N192.904 million, but incurred N335.623 million as cost, resulting in a N142.719 million loss. Tomato paste did not however report any revenue for the year, […]