Nascon Allied Industries, reported flat half year (H1) 2020 profits compared to a year ago, on higher external haulage costs even as revenues increased by 12 percent.
The firm which is in the principal activities of processing of raw salt into refined, edible and grade salt reported N1.487 billion in after-tax profit in June 2020, compared to N1.449 billion a year earlier.
Revenues for the period increased to N14.52 billion, compared to N12.97 billion in 2019.
The company which also produces Seasoning and Vegetable Oil through distributors across the country, reported a 550 percent increase in distribution costs in the period to N2.744 billion.
Components of distribution cost include: External haulage N1.439 billion, depreciation N917.4 million, branding expense N244.8 million and market activation N169.9 million.
Nascon shares closed trading at N9.60, giving it a market capitalization of N25.4 billion. The stock is down 26 percent in one year.