What to expect from NASCON in 2018

NASCON Allied Industries, a leading salt producer in Nigeria, has shown impressive growth in its financial report for the third quarter of 2017. The company reported a significant increase in earnings by 62 per cent, from 12.8 billion naira in Q3 2016 to 20.71 billion naira in the same period in 2017. Managing Director Paul Farrer recently sat down with CNBC Africa to discuss the company's performance in 2017 and provide insights into what to expect in 2018. Farrer highlighted the key strategies that drove NASCON's growth in 2017, including pushing retail pricing, retaining volumes, and implementing cost reduction measures to drive profit before tax (PBT) up by a remarkable hundred and thirty percent year on year. He credited the government's efforts to improve the ease of doing business and the availability of liquidity in the foreign exchange market as factors that positively impacted the company's performance. Looking ahead to 2018, Farrer expressed confidence in NASCON's outlook for the first quarter, citing Nigeria's economic recovery and positive market conditions. The company currently holds a market share of approximately 55 to 60 per cent and has plans to enter new segments to further increase its market share by the end of 2018 and 2019. While details about the new areas of expansion were not disclosed, Farrer mentioned a focus on backward integration programs to provide local products for the Nigerian market. Despite facing challenges such as distribution expenses and increased costs of funds in the previous year, NASCON managed to improve efficiencies and lower costs, resulting in a positive impact on the company's performance. Farrer acknowledged the varying projections for economic growth in Nigeria but remained optimistic about seeing growth as the country emerges from recession. He emphasized the importance of government policies and expressed hopes for positive impacts on the sector moving forward.