NASCON Allied Industries Plc has reported a pre-tax profit of N14.98 billion in its first quarter (Q1) ended March 31, 2026. This represents a 32.45% increase from the N11.31 billion recorded in the corresponding period of 2025.
The Q1 2026 financial results, released on the Nigerian Exchange (NGX), show that the 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 the cost of sales, lower finance costs, and improved operational efficiency.
Revenue declined by 5.99% 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 the cost of sales to N18.89 billion, largely driven by lower raw material costs and improved production efficiency.
This pushed gross profit up by 14.27% to N20.45 billion, highlighting a strong improvement in gross margins despite the revenue contraction. Operating efficiency improved significantly, with operating expenses dropping sharply by 87.93% to N0.86 billion, supporting a 20.39% rise in operating profit.
Finance income more than doubled to N2.53 billion, while finance costs declined by 59.26% to N86.48 million, reflecting reduced borrowing costs and improved treasury management. 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. Trade receivables rose sharply by over 200% to N60.22 billion, suggesting increased credit sales and potential cash flow pressures.
Total liabilities nearly doubled by 98.74% to N79.70 billion, driven largely by higher current liabilities, including trade payables and short-term borrowings. Total equity grew by 60.27% to N81.07 billion, reflecting stronger retained earnings and improved profitability. Rising leverage and working capital pressures remain key considerations in the balance sheet outlook.
