Industrial and Medical Gases half-year earnings triples in one year

The earnings of Industrial and Medical Gases (IMG) Nigeria Plc, a manufacturer and distributor of natural resources earnings rose to the highest in 12 years in the first half of 2024, BusinessDay analysis shows.

According to the company’s financial statements, the company’s after-tax profit rose by 354.5 percent to N1.5 billion in the first half year 2024, up from N325 million in the same period last year.

The manufacturer’s revenue grew by 34.2 percent to N3.65 billion from N2.73 billion.

The company’s revenue growth can be attributed to an increase in the sales of gases which grew to N3.5 billion in H1 from N2.61 billion in the same period of 2023.

Read also: Manufacturers seek reversal of electricity tariff increase from 200% to 40%

Revenue generated from delivery charges also grew by 78.6 percent to N50.2 million from N28.1 million.

In the six months ended June 2024, the firms’ cost of sales grew by 58.8 percent to N1.89 billion from N1.19 billion while its finance cost increased to N147.7 million in H1 from N100.7 million in the same period last year.

IMG’s other operating profit was up by 227.7 percent to N1.77 billion from N5537.7 million, driven by gains on foreign exchange transactions of N1.2 billion in the first half of 2024 from N125.5 million.

Its selling and distribution expenses grew by 34.8 percent in H1 to N589.4 million from N437.8 million while its administrative expenses also grew to N608.6 million from N463.9 million.

The results also showed that total assets grew by 102.4 percent to N14.9 billion in H1 from N7.4 billion in the same period last year.

Cash and cash equivalents were up by 115 percent to N6.02 billion in the first six months of 2024 from N2.8 billion in the same period last year.

Net cash flow from operating activities declined by 39.1 percent to N1.4 billion in H1 from N2.3 billion, indicating that the company is not generating enough cash from its operations.

Read also: Nigeria manufacturers’ confidence eases on worsening macroeconomic challenges

Its net cash flow from investigating activities was negative to N92.06 million from N-476.1 million due to the N2.76 billion purchase of property, plant, and equipment.

During the year under review, IMG reported earnings per share of N310 per share in the first six months of 2024, from N65 in the corresponding period of 2023.

Industrial & Medical Gases Nigeria is a company in Sub-Saharan Africa, specializing in industrial, medical, and food-grade gases, welding equipment, medical supplies, and engineering services.