NASCON Allied Industries Plc has reported a pre-tax profit of N14.98 billion in its first quarter (Q1) ended March 31, 2026, representing a 32.45% increase from N11.31 billion recorded in the corresponding period of 2025.
The Q1 2026 financial results released on the Nigerian Exchange (NGX) show that the moderate performance was driven by significant cost efficiency and improved operating margins.
Despite a modest decline in revenue, the company delivered strong profitability growth, supported by a sharp reduction in cost of sales, lower finance costs, and improved operational efficiency.
A closer look at the company’s performance shows that improved cost management was the primary driver of earnings growth.
Revenue declined by 6% to N39.34 billion, reflecting softer sales, likely due to pricing pressures and evolving market dynamics. However, this was more than offset by a substantial 21.13% drop in cost of sales to N18.89 billion, largely driven by lower raw material costs and improved production efficiency.
As a result, pre-tax profit rose by 32.45% to N14.98 billion, while post-tax profit increased by 30.63% to N9.89 billion, despite a 36.5% rise in tax expense to N5.09 billion driven by higher Company Income Tax and development levy.
Total assets surged by 77.07% to N160.77 billion, supported by significant increases in current assets, particularly trade receivables.
Rising leverage and working capital pressures remain key considerations in the balance sheet outlook.
While profitability metrics remain strong, some underlying pressures persist.
These factors highlight the need for careful liquidity and working capital management going forward.
The company’s strong earnings performance has been reflected in its stock price momentum on the Nigerian Exchange.
With a market capitalisation of approximately N559 billion, NASCON ranks among the top 30 most valuable stocks on the NGX, with sustained investor interest supported by strong earnings growth and improved margins.
The company’s Q1 2026 performance underscores sustained earnings rebound following 2025 full-year earnings performance that saw profit after tax more than double to N33.5 billion.
The company distributed N6 per share dividend to shareholders for the 2025 financial year, about 200% increase over the previous year, and the highest since listing on the Exchange.
Significant reduction in cost of sales and finance costs has boosted profitability in Q1, 2026 despite lower revenue.
