Home News NASCON to resume tomato paste, vegetable oil production to boost profit

NASCON to resume tomato paste, vegetable oil production to boost profit

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NASCON Allied Industries said the company would resume the production of tomatoes paste and vegetable oil to boost its operations and bottom-line.Mr Paul Farrer, NASCON’s Managing Director, assured the shareholders at the company’s 2017 Annual General Meeting AGM, in Lagos, that the management had prioritized resumption of the two production lines.

Farrer said the company would resort to backward integration to ensure the revival of the two production lines.Backward integration refers to the process in which a company purchases or internally produces segments of its supply chain.

In other words, it is the acquisition of controlled subsidiaries aimed at the creation or production of certain inputs that could be utilized in its productions.According to him, the company’s strategies when concluded will be communicated to the shareholders at the next AGM.

Farrer said the company would continue to leverage synergies and enhance efficiencies across its business operations to curtail costs.“Product innovation and improvement in our seasoning business aimed at delivering savory taste experiences will remain a priority,” he said.

MrsYemisiAyeni, the company’s Chairperson, said the drawbacks being experienced in the tomato paste and vegetable oil categories over the last two years continued during the year under review.

Ayeni said the required raw materials, triple concentrate tomato paste and crude palm oil, remained on the restricted import list.She explained that the company’s efforts to source the required materials locally were futile.

Ayeni, however, expressed optimism that the challenge would be sorted out going forward, noting that the company remained committed to execute its sustainable growth strategy.

“Going forward, we are optimistic about the year ahead, as we remain strongly committed to executing our sustainable growth strategy, thereby growing consumer trust and shareholder confidence,’’ she said.

Speaking at the meeting, MukhtarMukhtar, the Chairman, Trusted Shareholders’ Association commended the company for paying enhanced dividend and performance in spite of the challenging operating environment.Mukhtar said the company had remained the toast of shareholders due to its improved performance.

Mr John Efota, another shareholder, lauded the company for the improved dividend declared during the period under review.Efota said the company’s share capital had remained the same, adding that the shareholders would appreciate a bonus issue next year.

The shareholders during the AGM approved the payment of a dividend of N1.50 per share, totaling N3.97billion.The dividend was higher compared to 70k per share, totaling N1.85 billion, paid in 2016.

The company posted a turnover of N27.06 billion for the financial year ended Dec, 31, 2017 as against N18.29 billion achieved in 2016, representing an increase of 48 per cent.Profit after tax rose from N2.42 billion in the previous year to N5.34 billion, an increase of 121 per cent.

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