Industrial and Medical Gases’ earnings surge 184% on FX gain

Industrial and Medical Gases of Nigeria Plc, a manufacturer and distributor of natural resources, reported a 184 percent increase in its after-tax profit in the nine months ending September 2024.

The manufacturer in Sub-Saharan Africa specialises in industrial, medical, and food-grade gases, welding equipment, medical supplies, and engineering services.

According to its latest financial statement, after-tax profit rose to N1.6 billion in nine months of 2024 from N564.3 million in the corresponding period of 2023.

Despite foreign exchange volatility, inflationary pressures, and naira devaluation, IMG defies economic odds by recording a 160.9 percent in operating profit to N2.2 billion in nine months of 2024 from N843.9 million, driven by gains on foreign exchange transactions of N1.2 billion from N53 million.

The firm’s revenue rose by 47.6 percent to N6.2 billion from N4.2 billion, generated by gas sales of N5.96 billion in nine months of 2024 which rose from N4 billion in the same period last year.

Its cost of sales grew by 61.8 percent to N3.3 billion from N2.04 billion while finance cost increased to N428.7 million from N109.7 million.

IMG’s selling and distribution expenses slightly increased to N778.7 million from N724.9 million while its administrative expenses also grew by 67.8 percent to N1.2 billion from N715 million.

The results also showed that total assets grew by 102.4 percent to N14.9 billion in nine months of 2024 from N7.4 billion in the same period last year.

Cash and cash equivalents were up by 139 percent to N5.5 billion from N2.3 billion. Net cash flow from operating activities declined by 50 percent to N2.2 billion from N3.3 billion, indicating that the company is not generating enough cash from its operations.

Its net cash flow from investigating activities was negative to N3.4 billion from N-764.3 million due to the N3.9 billion purchase of fixed assets.

During the year under review, IMG reported earnings per share of N314 per share in nine months of 2024, from N113 in the corresponding period of 2023.