Nascon Grows Profit by 26% to N19.6 Billion in H1-2026
Nascon Allied Industries Plc delivered a solid financial performance in the first half of 2026, demonstrating strong operational efficiency by converting modest revenue growth into significantly higher profitability.
Revenue increased by 3.8% year-on-year to N81.2 billion. However, gross profit outpaced sales growth, rising 9.2% to N40.8 billion and lifting the gross profit margin above 50% from approximately 48% in the corresponding period of 2025.
The improved margin underscores the company’s ability to retain a larger share of revenue through better cost management and operating efficiency.
The stronger margin performance flowed through to operating earnings, with operating profit advancing 15.0% to N24.5 billion despite the relatively modest increase in sales.
Bottom-line performance was even more impressive. Profit after tax rose 25.7% to N19.6 billion, supported by a sharp improvement in net finance income.
Finance income more than doubled to N5.3 billion, reflecting higher returns on the company’s growing cash reserves, while finance costs declined 58.5% to N171.6 million. Consequently, earnings per share increased from 1,154 kobo to 1,451 kobo.
The balance sheet also strengthened during the period. Cash and cash equivalents increased to N46.1 billion, while total assets expanded 19.4% to N161.6 billion.
Trade receivables and trade payables rose by 62.9% and 63.8%, respectively, largely reflecting higher business activity.
Although this trend appears consistent with increased operating volume, receivables growth remains an area to monitor to ensure collections continue to keep pace.
Shareholders’ equity grew 4.8% to N74.6 billion despite dividend payments nearly tripling to N16.2 billion during the period, reflecting the company’s robust earnings distribution following its strong 2025 financial performance.
Overall, Nascon delivered an impressive first-half performance. Improved margins, lower financing costs, and stronger investment income enabled the company to translate modest revenue growth into substantially higher earnings, highlighting disciplined execution and continued financial resilience #Nascon Grows Profit by 26% to N19.6 Billion in H1-2026# NASCON Rises as Investors Take Position After Dividend Notice
