Industrial & Medical Gases Posts N1.42bn Profit in 2025 Despite Rising Costs
Industrial & Medical Gases Nigeria Plc has announced its financial results for the year ended December 31, 2025, posting a profit before tax of N1.42 billion despite a challenging operating environment marked by rising expenses and macroeconomic pressures. The results, drawn from the company’s unaudited financial statements filed with the Nigerian Exchange and reported by Nairametrics, reflect resilience in the face of cost headwinds that weighed heavily on margins throughout the year.
For the full 2025 financial year, IMG’s revenue held steady at approximately N8.37 billion, largely underpinned by the continued dominance of gas sales, which accounted for over 96 percent of total turnover. Gross profit edged higher by nearly 5 percent year-on-year, rising to N4.07 billion, thanks in part to a modest narrowing in cost of sales.
However, the broader cost structure told a far more complex story, as operating expenses climbed sharply. Administrative costs rose nearly 30 percent to N1.7 billion, selling and distribution expenses more than tripled, and foreign exchange losses of N113.9 million further ate into returns.
The combined impact of these cost pressures saw operating profit slide steeply to N1.38 billion, down from N2.44 billion a year earlier, and profit after tax fell to N933.07 million. Earnings per share dropped to N1.28 from N3.25 in 2024, underscoring the squeeze on bottom-line performance.
Total assets remained broadly stable at N14.69 billion, while liabilities contracted significantly, falling to N2.9 billion from N8.96 billion the prior year an improvement that helped bolster shareholders’ equity to N11.78 billion, nearly double the prior period.
Despite the decline in full-year profitability versus 2024 when IMG reported pre‑tax earnings of roughly N2.44 billion and profit after tax of N1.62 billion athe 2025 results were not devoid of bright spots. Fourth-quarter pre‑tax profit improved to N204.9 million, up from N160.2 million in the corresponding quarter of 2024, pointing to some sequential recovery in earnings momentum late in the year.
At the same time, the company’s share price has trended positively, trading above the N34 level in early February 2026 and up about 10 percent month‑to‑date, reflecting improved investor sentiment following the earnings release.
Market analysts and investors tracking manufacturing and industrial firms in Nigeria will see IMG’s 2025 performance as emblematic of broader sector dynamics: stable top‑line growth but compressed margins amid rising administrative, distribution, and currency‑related costs.
Earlier performance records show that the company had enjoyed robust momentum in preceding years—with profit before tax surging from N1.247 billion in 2023 to N2.44 billion in 2024 as revenue climbed to N8.376 billion, illustrating the cyclical nature of its earnings in response to external economic forces.
As Nigeria continues to navigate inflationary pressures, exchange rate volatility, and infrastructure cost challenges, IMG’s latest results highlight both the opportunities and the constraints in the industrial gases segment: enduring demand for critical products like oxygen and nitrogen, but an imperative to manage costs and operational efficiencies to sustain profitability.
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