Nascon Allied Industries Plc has reported a remarkable 77 per cent increase in its revenue for the first quarter of 2025.

According to the company’s unaudited financial statements for the period ending 31 March 2025 filed on the Nigeria Exchange Limited recently, the company’s revenue from contracts with customers surged to N41.9bn, compared to N23.6bn recorded during the same period in 2024.

In line with its revenue performance, Nascon’s gross profit showed a notable increase, rising by 60 per cent to N17.9bn in Q1 2025, compared to N11.2bn in the same period last year.

This growth in gross profit can be attributed to the company’s focus on streamlining its production processes and improving the efficiency of its operations. By leveraging economies of scale, Nascon has successfully reduced its cost of sales to N23.96bn, up from N12.46bn in Q1 2024, while maintaining its strong revenue growth.

Despite the impressive topline results, Nascon encountered a few challenges with its operating expenses. Distribution costs saw a modest increase, reaching N5.12bn from N4.99bn in Q1 2024, reflecting the higher logistics costs associated with increased production and sales.

Administrative expenses also rose significantly, climbing to N2.06bn in Q1 2025, up from N1.43bn in the same period of 2024. This uptick in expenses was attributed to the company’s investments in technology and human resources to support its expanding operations.

Despite the rise in operating costs, Nascon’s operating profit for the quarter surged to N10.42bn, a significant increase from the N1.78bn recorded in Q1 2024. This sharp growth in operating profit is reflective of the company’s ability to convert higher revenues into earnings, thanks to effective cost control measures and improved production efficiency.

Profit before taxation also saw a remarkable improvement, rising to N11.31bn, compared to just N1.84bn in the corresponding period last year. This represents a jump of over 500 per cent, highlighting the strong performance in the quarter. The company’s robust earnings were further boosted by finance income, which increased to N1.1bn from N418.7m recorded in Q1 2024, driven by higher interest income from investments.

The company’s taxation expense for the quarter stood at N3.73bn, a sharp increase compared to N606.87m in Q1 2024, reflecting higher profits for the period.

Despite the higher tax burden, Nascon’s overall profitability remained strong, delivering a profit after tax of N7.58bn in the first quarter of 2025. This represents a dramatic 515 per cent increase over the N1.23bn reported for Q1 2024, further underscoring the company’s stellar performance.

Nascon’s basic and diluted earnings per share for the first quarter of 2025 increased to 374 kobo, up from 186 kobo in Q1 2024. The significant growth in EPS is a reflection of the company’s improved profitability, which will likely enhance shareholder returns. Investors are expected to benefit from the strong earnings trajectory, as Nascon continues to capitalize on favorable market conditions.

In the period under review, Nascon’s total assets increased by 7 per cent to N90.8bn, up from N84.8bn at the end of Q1 2024. This growth was largely driven by increases in cash and cash equivalents, which surged to N37.91bn, compared to N15.7bn reported at the end of Q1 2024.

Nascon’s total equity also grew significantly, rising to N50.63bn from N28.7bn at the end of March 2024. This growth in equity was primarily driven by retained earnings, which stood at N48.85bn as of 31 March 2025, compared to N26.95bn in the previous year.

On the liabilities side, Nascon’s total liabilities rose to N40.18bn, compared to N56.1bn at the end of Q1 2024. The decrease in liabilities is due to the company’s efforts to reduce short-term borrowings and manage its debt levels prudently. As of the end of Q1 2025, Nascon’s borrowings stood at N1.11bn, down from N3.93bn in Q1 2024, reflecting its improved liquidity position.

Nascon’s cash flows from operating activities showed a significant improvement, with net cash generated from operations increasing to N14.39bn, compared to a negative cash flow of N8.35bn in Q1 2024. The improved cash flow is a direct result of the company’s higher profitability and more efficient management of working capital.

In terms of investing activities, Nascon spent N339.5m on the purchase of property, plant, and equipment during the quarter. The company also generated N8.6m from the sale of property, plant, and equipment. Finance income from interest earned on investments also contributed positively to cash flow, with N1.1bn recorded during the period.

On the financing side, Nascon repaid N1.72bn in borrowings and paid N125.8m in interest on borrowings. The company also made payments of N103.9m on lease liabilities. However, despite these outflows, Nascon’s cash position improved, with total cash and cash equivalents at the end of the period rising to N37.91bn.

The PUNCH reported that Nascon Allied Industries Plc has reported a 49 per cent increase in revenue to N120.4bn for the financial year ended December 31, 2024.