Shareholders of Industrial & Medical Gases (IMG) Nigeria Plc, have approved the payment of N249 million declared by the board of the directors of company.
The dividend which was approved at the company’s 64th Annual General Meeting (AGM), in Lagos represents 50 kobo per share.
Addressing shareholders at the meeting, the Acting Chairman, Aminu Ado said Competition in Nigeria’s gas market continues to rise.
He noted that market intelligence studies indicate that more gas businesses are joining the market, despite the fact that many industrial gas customers engage in backward integration strategy.
Ado noted that as per the latest market research estimates, Nigeria presently has over sixty enterprises engaged in the production of industrial gases.
Ado noted that despite the negative impacts of Forex, the Russian/Ukrainian, and the Israeli/Gaza wars on the economy of the world and Nigeria the company’s sustained capital investment and optimization of the use of resources amongst others.
Financial performance
The total revenue from the business grew from N5.33 billion realized in 2022 to N6.06 billion in 2023. The year’s profit after tax rose to N0.85 billion from N0.44 billion.
the total comprehensive income jumped by 295 %, from N215.967 million in 2019 to N852. 753 million 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.
“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,” he said.
The company’s Managing Director and Chief Executive Officer, Ayodeji Oseni, assured the shareholders of a better future ahead.
He noted that despite the prevailing gloomy national economic outlook, the future holds great promise for Industrial & Medical Gases Nigeria Plc as it continues 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.
Volatility of forex costs
Responding to a shareholder’s observation, the Finance Director, Adesina Alayaki, raised concerns about high electricity costs, noting that 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’ view
The President of Noble Shareholders’ Solidarity Association (NSSA), Mathew Akinlade, commended the company’s performance amid a challenging environment. According to him, the Company has the capacity to pay a higher dividend in the near future.