The shareholders of Industrial and Medical Gases Nigeria Plc, have been rewarded with N208m as dividend for the 2022 financial year, as the management of the firm moves to reduce its costs and optimise production.
A statement from the firm stated that the cash dividend of N208m for the 2022 financial year translated to 40 kobo per ordinary share, as against a stock dividend of one for every five shares held in 2021.
The profit before tax of the manufacturer of industrial and medical gases grew by 27.56 per cent to N704m in December 2022, from N552m reported in the corresponding period in 2021, while its earnings per share stood at 90 kobo, compared to 89 kobo in the previous year.
The net profit shot up by 20.52 per cent to N448m from N372m in 2021.
Commenting on the company’s performance during its 64th Annual General Meeting in Lagos, the President, Noble Shareholders Association of Nigeria, Mathew Akinlade, commended the board, management and staff of IMG for an outstanding performance despite the issues of inflation, forex scarcity, insecurity and other challenges that impacted business in the review period.
“Gross revenue rose by 44 per cent. Although the cost of sales increased by 56 per cent, the company is generous to give a very good return of 40 kobo dividend per share out of earning per share of 90 kobo, almost an increase of 50 per cent. It means the board and management care for the shareholders,” Akinlade said.
Addressing shareholders, the acting Chairman of the firm, Aminu Ado, assured the shareholders that the company would embark on revenue-generating capital expenditure to boost its earnings in 2023.
He said, “The year 2022 was a challenging but successful year for us. Our superior performance was made possible by the collective efforts of all our stakeholders. In the year 2023, your board will continue to support management’s drive on aggressive marketing of its products, improvement service delivery, reduction of overheads, developing new markets and introduction of new and innovative products. These activities, we believe, will back-up management’s drive to sustain and improve shareholder value in 2023.”
The Managing Director and Chief Executive Officer, Ayodeji Oseni, explained that some of the key drivers of the impressive performance were the implementation of strategic business and other initiatives to cut costs and improve performance.
“We place a high premium on strategic business development initiatives and we are a customer-focused organisation. The adoption of a deliberate cost reduction policy and focused improvements in our processes is to ensure that plant capacity utilisation plays a major role in our performance,” said Oseni.
Meanwhile, some shareholders have urged the company to ensure that it puts in place a strategy to cope with the new policies of the Federal Government.
The company rebranded in 2021 from BOC Gases Nig. Plc.
On the Nigerian Exchange Limited, the shares of the firm had remained constant at N8.8 for the past seven days.
