(Financial Statements for the Period Ended 31st December 2024)
Key Financial Metrics
- Revenue: ₦8.30 billion (2024) vs. ₦6.06 billion (2023) → 37% growth
- Gross Profit: ₦3.83 billion (2024) vs. ₦2.85 billion (2023)
- Operating Profit: ₦2.45 billion (2024) vs. ₦1.27 billion (2023)
- Profit Before Tax (PBT): ₦2.45 billion (2024) vs. ₦1.25 billion (2023)
- Net Profit After Tax: ₦1.67 billion (2024) vs. ₦852.75 million (2023) → 96% growth
- Earnings Per Share (EPS): 335 kobo (2024) vs. 171 kobo (2023)
Industrial & Medical Gases Nigeria Plc recorded significant revenue growth of 37% year-over-year, driven by increased sales of industrial and medical gases, fueled by rising demand in key industrial sectors such as manufacturing, healthcare, and energy. The company successfully leveraged market expansion strategies and enhanced supply chain efficiencies to support this revenue surge.
The company’s net profit nearly doubled, reflecting higher margins, operational efficiencies, and strong foreign exchange gains of ₦1.21 billion, which positively impacted overall profitability. This growth was also driven by strategic cost reductions, improved procurement processes, and the adoption of advanced gas processing technologies. The company’s ability to optimize production costs while scaling its operations played a crucial role in achieving record profitability.
Additionally, increased investment in modernized distribution networks and strategic customer partnerships helped drive higher sales volumes while minimizing logistics expenses. By maintaining a disciplined approach to expense management and debt financing, Industrial & Medical Gases Nigeria Plc has positioned itself for sustained revenue and profit growth in the years ahead.
Operational Highlights & Cost Management
- Cost of Sales: ₦4.47 billion (2024) vs. ₦3.21 billion (2023)
- Selling & Distribution Expenses: ₦1.04 billion (2024) vs. ₦1.09 billion (2023)
- Administrative Expenses: ₦1.59 billion (2024) vs. ₦984.37 million (2023)
- Finance Costs: ₦17.63 million (2024) vs. ₦129.67 million (2023)
The company achieved cost efficiency improvements, reducing selling and distribution expenses despite revenue growth. This was achieved through streamlined supply chain logistics, optimized fuel consumption strategies, and improved procurement processes, ensuring that operating expenses remained under control. The implementation of automation and digital tracking systems enhanced operational oversight, allowing for better expense monitoring and forecasting.
The significant reduction in finance costs, from ₦129.67 million in 2023 to ₦17.63 million in 2024, highlights improved debt management strategies and lower interest payments. The company successfully refinanced existing obligations, securing lower-cost funding options and restructuring its debt portfolio to minimize financial burdens. Additionally, disciplined cash flow management and strategic investment planning played a crucial role in reducing overall financing expenses, enabling the company to allocate more resources toward expansion initiatives and technological advancements.
Capital Expenditures & Shareholder Returns
- Total Assets: ₦14.88 billion (2024) vs. ₦7.39 billion (2023) → 101% growth
- Total Equity: ₦5.97 billion (2024) vs. ₦4.18 billion (2023)
- Borrowings (Related Party Loans): ₦5.33 billion (2024) (New funding for expansion)
- Dividend Paid: ₦249.75 million in 2024
- Retained Earnings Growth: ₦5.36 billion (2024) vs. ₦3.93 billion (2023)
Industrial & Medical Gases Nigeria Plc secured a ₦5.5 billion long-term loan for expansion, positioning the company for future capacity growth and market expansion. The 101% growth in total assets reflects the company’s aggressive investment in infrastructure and operational scalability.
Management Commentary
Key Takeaways:
- Revenue growth was fueled by increased gas sales and stable engineering services.
- Operational efficiency improvements led to higher profit margins.
- Strategic investment in expansion and infrastructure will support future growth.
- Foreign exchange gains played a significant role in boosting overall profitability.
Strategic Initiatives:
- Capacity expansion in gas production facilities to meet rising demand.
- Improved distribution network and logistics for enhanced supply chain efficiency.
- Technology-driven efficiency improvements to reduce operational costs.
- Strategic partnerships and market expansion initiatives to strengthen competitive positioning.
Outlook for 2025
Industrial & Medical Gases Nigeria Plc remains optimistic about sustained revenue and profitability growth, with a focus on:
- Further revenue growth, driven by increased demand for industrial and medical gases.
- Strategic investments in infrastructure expansion to enhance production capacity.
- Continued focus on cost efficiency and debt management for financial stability.
- Exploring new market opportunities to expand regional market share.
With a strong balance sheet, effective risk management, and strategic expansion initiatives, the company is well-positioned for long-term growth and shareholder value creation.
Conclusion
Industrial & Medical Gases Nigeria Plc delivered strong financial performance in 2024, achieving significant revenue growth, improved profitability, and strategic expansion initiatives. The company successfully capitalized on growing demand for industrial and medical gases, strengthening its market position through technological advancements and operational efficiencies.
With a strategic focus on enhancing production capabilities, expanding distribution channels, and leveraging foreign exchange gains, the company maintained robust financial performance despite market fluctuations. Investments in automation, energy efficiency, and infrastructure development have further improved cost-effectiveness, ensuring sustainable long-term growth.
The company is well-positioned for continued success in 2025, backed by strong market demand, operational efficiencies, and infrastructure investments. Looking ahead, Industrial & Medical Gases Nigeria Plc aims to drive innovation in gas production, expand its regional footprint, and strengthen strategic partnerships to sustain its momentum and deliver continued shareholder value.
