IMG records decade-high profit on cost management

Industrial & Medical Gases Nigeria Plc, one of Nigeria’s largest manufacturers and distributors of natural resources, has achieved a financial milestone of recording its highest profit in 10 years driven by its strategic financial management in a volatile economic environment.

According to the company’s audited financial statement, Profit for the period rose by 99.5 percent to N1.7 billion in 2024 from N852 million in 2023.

The company is a provider of industrial, medical, and specialty gases in Nigeria. Established over 65 years ago, IMG is recognised as the largest industrial gas supplier in the country, with production plants in Lagos, Port Harcourt, and Kaduna.

They offer a wide range of products, including argon, nitrogen, carbon dioxide, oxygen, and welding products, as well as medical equipment and engineering services.

Read also: Industrial and Medical Gases half-year earnings triples in one year

Despite the absence of export revenue or foreign investments, IMG navigated Nigeria’s volatile currency landscape by earning N1.2 billion gain from foreign exchange transactions in 2024 from N502.9 million in 2023 through strategic management of naira fluctuations.

BusinessDay findings show that Industrial & Medical Gases Nigeria Plc primarily focuses on serving the domestic market in Nigeria, catering to industries such as healthcare, manufacturing, oil and gas, and food and beverage and their operations are centered on meeting local demand and supporting industries within Nigeria.

Analysts say IMG Nigeria likely capitalised on favorable currency fluctuations, leveraging its robust domestic market presence and optimising its financial instruments to mitigate risks and maximize gains.

“When the Nigerian Naira appreciates or depreciates against foreign currencies, IMG Nigeria may experience gains or losses on transactions involving foreign currency payments or receipts. The company’s ability to navigate Nigeria’s challenging economic environment, marked by fluctuating exchange rates, demonstrates its resilience and adaptability,” a Lagos-based finance analyst said.

Further analysis reflecting the highs and lows of Naira exchange rate against the US dollar over the past three years reveals that Naira to Dollar was N447.46 per USD on January 2nd, 2023 and rose to N897.50 per USD on December 28, 2023.

Read also: Shareholders laud performance of Industrial & Medical Gases

On January 18th, 2024, Naira to dollar was N871.44 per USD but rose to N1,685.62 to USD on November 27th, 2024, reflecting the constant fluctuation in the Nigerian currency which aided the company’s earnings.

Industrial and Medical Gases Nigeria Plc recorded a 36.9 percent increase in revenue to N8.3 billion in 2024 from N6.06 billion in 2023.

Regardless of the rise in cost of sales to N4.5 billion from N3.2 billion in 2023, IMG recorded a 92.3 percent increase in operating profit to N2.5 billion from N1.3 billion in 2023.