Nascon Plc 9M:2025 Earnings Note | Driving Profitability Through Pricing and Cost Discipline
NASCON delivered a strong performance in 9M:2025, with revenue rising 46.88% YoY to NGN117.35bn, driven by volume recovery and pricing gains in salt and seasoning. Q3:2025 performance was equally solid, as revenue grew 33.03% YoY to NGN39.19bn. Gross profit increased 62.24% YoY to NGN57.18bn, with margins expanding to 48.72% (vs. 44.10% in 9M:2024). PAT jumped 171.62% YoY to NGN24.33bn, supported by FX gains and tighter cost control, while EBITDA rose 8.42% YoY to NGN25.36bn. Retained earnings improved to NGN60.19bn, cash grew to NGN42.47bn, and net debt fell to NGN67.23mn. Northern Nigeria remained the key growth driver, contributing 77% of total revenue.At NGN103.60 (as of November 12, 2025), NASCON trades below our intrinsic value estimate of NGN113.62, implying a potential upside of 10.31%. Hence, we revise our recommendation to a BUY, as the stock is undervalued relative to earnings growth and sector peers.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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