NASCON recorded a significant increase of 21.24% in its Q1:2021 revenue to NGN8.34bn (vs. NGN6.88bn in Q1: 2020). Notably, revenue from all the company’s geographical locations increased during the review period. The highest increase was recorded in the West (+48.69%). Revenue performance of the Northern and Eastern regions trailed behind, inching upwards by 11.96% and 11.74% respectively. Considering that the domestic market for salt and seasoning products is highly competitive, we expect the re-opening of the land borders to intensify the competitive nature of the space. In addition, the consistent spike in inflation and its impact on consumers’ disposable income poses a downside risk to our outlook. Premised on the foregoing, we forecast a moderate top-line growth of 7.58% to NGN30.13bn in 2021FY driven primarily by improved demand in the B2B segment.
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