July 30, 2027/Cordros Report
NASCON Allied Industries Plc (NASCON) released their Q2-25 unaudited financials today (30 July), reporting an earnings per share (EPS) of NGN11.87, up from NGN5.35 in Q2-24. This brings H1-25 EPS to NGN11.54, a significant increase from NGN3.59 recorded in H1-24. The Q2-25 performance was underpinned by robust pricing gains and disciplined cost management.
Revenue grew by 35.4% y/y in Q2-25 (H1-25: +55.0% y/y), driven by a combination of pricing gains and moderate volume expansion, particularly from its Northern customer base. Notably, Q2-25 revenue growth still reflects the lagging impact of price increases implemented between H2-24 and Q1-25. However, heightened consumer price sensitivity triggered demand elasticity in the period, evidenced by a 13.3% q/q revenue decline. Regionally, the Northern market remained the strongest contributor, accounting for 78.3% of total revenue and growing by 47.3% y/y. Revenue from the Western region expanded modestly (+6.9% y/y; 15.8% of total revenue), while sales in the Eastern market declined slightly (-0.9% y/y; 5.9% of total revenue).
NASCON maintained strong cost discipline in Q2-25 amid rising demand elasticity, with cost of sales declining by 29.8% q/q — creating headroom for an 8.9% q/q expansion in gross profit. Consequently, gross margin improved significantly by 13.2ppts y/y to 53.7% (Q2-24: 40.5%), bringing H1-25 gross margin to 47.8% (H1-24: 43.7%). In parallel, cost-to-sales margin declined by 13.2ppts y/y to 46.3% in Q2-25 (Q2-24: 59.5%), with H1-25 cost-to-sales ratio at 52.2% (H1-24: 56.3%). Reflecting this enhanced cost efficiency, EBITDA margin rose by 792bps y/y to 31.7% in Q2-25 (Q2-24: 22.1%), lifting H1-25 EBITDA margin to 28.8% — a notable 12.5ppts y/y improvement from 14.3% in H1-24.
Further down, net finance income surged to NGN1.07 billion from net finance cost of NGN28.24 million in Q2-24. This improvement was driven by a significant 427.0% y/y surge in interest income on short-term fixed deposits from NGN240.00 million in Q2-24 to NGN1.26 billion in Q2-25.
Overall, profit before tax grew significantly by 122.0% y/y to NGN11.97 billion (Q2-24: NGN5.39 billion), while net profit came in at NGN8.02 billion (Q2-24: NGN3.61 billion), despite an effective tax rate of 33.0%, with total net profit for H1-25 settling at NGN15.60 billion (H1-24: NGN4.84 billion).
Comment: We are encouraged by NASCON’s ability to implement meaningful cost levers in Q2-25, which helped preserve operating efficiency despite increased price sensitivity and softer profit performance on a quarterly basis. The company’s strong focus on cost control, essential product mix, and entrenched retail trust remain key strengths, particularly as improving macro conditions — including disinflation and currency stability — continue to provide a supportive backdrop. In our view, these factors position NASCON to navigate the remainder of 2025E with resilience. Our estimates are under review.
