By Moses Ebosele

 

NATIONAL Salt Company of Nigeria Plc, a subsidiary of the Dangote Group, has posted a turnover of N8.8 billion, up by   11 per cent for the year ended December 31, 2009.

 

The company also recorded a profit of N2.7 billion as against N1.8 billion achieved in 2008.

 

Based on the performance, the company explained yesterday, that its Board has also proposed to pay a dividend of 50 kobo per share, amounting to N1.32 billion, with an assurance that it will always enhance its investor’s value in the company.

 

Managing Director of the company, Mr. Ade Adeniji, in a statement said “We will ensure that our shareholders continue to reap bountifully the fruits of their investments in the form of adequate capital appreciation, bonus issue and dividend provision”.

 

According to the result, sales revenue for the period rose by N879 million or 11.14 per cent from N7.888 billion to N8.767 billion at the end of last year.

 

Profit after tax for the period rose to N1.842 billion, representing N544 million or 41.91 per cent from the previous year’s N1.298 billion, representing earnings per share of about 69 kobo, out of which 72.46 per cent is being proposed for payment as dividend.

 

According to available balance sheet information, fixed assets of National Salt rose by N2.907 billion from N1.937 billion, while short-term borrowings by the company reduced by a significant 70.95 per cent from N29.358 million in the comparative period of 2008 to N8.528 million.

Working capital recorded a marginal growth from N2.446 billion from N2.428 billion in 2008, just as net assets of the company rose to N4.631 billion to N3.848 billion.

 

The statement said: “The 2009 robust performance is in line with the promise made by the present board and management that took over following the acquisition of significant stake in NASCON by the Dangote Group in January 2007.

 

“As a result of this, the company returned to profit in 2008, from a net loss of about N10.4 million at the end of 2006, due to what the Chief Executive Officer blamed in the past on unfavorable location and obsolete production facilities”.

 

The statement linked the sustained profit growth to significant investment in technology, besides efforts at improving market share with quality products, innovation and effective cost management.

 

“There have also been substantial investments in quality assurance, leading to certification by both the National Agency for Food & Drug Administration and Control and the Standard
organization of Nigeria.”

According to the Chairman of the company, Aliko Dangote,  “our high performance is driven by creating decision-driven structure centered on innovation and cost management.”

 

Source: Guardian