IMG grows profit by 295% in five years

As evidence of resilience and continuous innovation despite the headwinds in the Nigerian economy, the profit after tax of Industrial & Medical Gases (IMG) Nigeria PLC., has jumped by 295 percent, from N215.967 million in 2019 to N852.753 million in 2023.

In the review period, the revenue of the frontline manufacturer of industrial and medical gases, also grew by 98 percent from N3.06 billion in 2019 to N6.06 billion in 2023, while Earnings Per Share (EPS) rose steadily from 52 kobo to N1.71.  The company declared a dividend of 50 kobo per share for its 2023 financial performance, totaling N249.47 million. The dividend was unanimously approved by the shareholders.

Addressing the shareholders during the Company’s 64th Annual General Meeting (AGM) in Lagos at the weekend, the Acting Chairman, Aminu Ado,  explained that the impressive performance would be sustained in 2024 by the Company’s capital investment and optimization of the use of resources amongst others.

“Your Company had another great year despite the negative impacts of Forex, the Russian/Ukrarian and the Israeli/Gaza wars on the economy of the world and Nigeria. The total revenue from the business grew from N5.33 billion realized in 2022 to the N6.06 billion in 2023. The year’s profit after tax rose to N0.85 billion from N0.44 billion. We intend to sustain the growth performance in 2024 by our capital investment, optimizing the use of our resources, improving logistics, cost-cutting measures, generating new business prospects, and improving on employee training,” Ado said.

Corroborating him, the company’s Managing Director and Chief Executive Officer, Ayodeji Oseni, assured the shareholders of better future ahead. “Despite the prevailing gloomy national economic outlook, the future holds great promise for Industrial & Medical Gases Nigeria Plc as we continue to consolidate and innovate. We shall remain resolute in implementing our growth strategy as we navigate the challenging operating terrain that lies ahead, leveraging opportunities and production efficiencies plus our cost management drive towards sustainable profitability. Our human capital remains the pivot of our transformation and future progress even at these trying times. We shall increase market presence and stakeholders’ engagement towards increased turnover.’, explained Oseni.

Responding to a shareholder’s observation, the Finance Director, Adesina Alayaki, addressed some concerns about high electricity costs, saying some customers who rented cylinders had gone out of business. He also noted that IMG’s use of natural gas which is subject to volatility of forex costs had impacted the company’s operations. He however expressed optimism that IMG remained committed to its growth strategy.

Shareholders commended the Board and Management of IMG for their top-notch performance in the review period.

The President of Noble Shareholders’ Solidarity Association (NSSA), Mathew Akinlade described IMG as a company with solid balance sheet and very liquid. According to him, the Company can pay higher dividend in the near future.