Morison Industries Plc has reported a near doubling of its revenue for the 2024 financial year even though the company remains loss-making, largely driven by rising operational costs.
According to the company’s audited financial statements for the year ended December 31, 2024, Morison Industries recorded a 98 percent increase in revenue, growing from N145.23 million in 2023 to N287.18 million in 2024.
The growth was driven largely by increased demand for its hygiene and pharmaceutical products and stronger third-party contract manufacturing activity.
Despite this impressive top-line performance, the company posted a net loss of N78.75 million, a slight improvement from the N98.72 million loss recorded in the previous year. The loss before tax stood at N76.96 million, while operating losses narrowed to N59.7 million from N77.99 million in 2023.
Morison’s cost of sales rose by 75 percent to N209.81 million, while operating expenses increased to N170.7 million, up from N136.96 million in the prior year. Distribution and selling expenses also jumped by over 59 percent, reflecting the impact of inflationary pressure and supply chain disruptions.
The National Bureau of Statistics (NBS) reported a consumer price index of 23.71 percent in April 2025, following a rebasing. Previously, Nigeria’s inflation rate reached 34.8 percent in December 2024.
Read also: Morison Industries’ loss widens to N28.5m in Q1
Economic Challenges Weigh Heavily
The company’s performance was significantly affected by Nigeria’s broader economic challenges in 2024. High inflation, currency devaluation, and elevated interest rates all contributed to higher costs and weaker consumer purchasing power.
The depreciation of the naira, particularly, impacted Morison’s import-dependent business segments. Finance expenses remained elevated at N19.6 million, while finance income stood at just N2.34 million.
As of year-end, the company’s current liabilities exceed current assets by N438 million, highlighting liquidity pressures. Morison also reported accumulated losses of N916.28 million, casting uncertainty over its short-term financial health.
The company’s shareholders’ fund stood at N781 million in 2024, a 9.1 percent decline from N860 million in 2023.
Morison Industries reported a net cash inflow from operating activities of N3.49 million, down from N5.53 million in 2023. This is despite an improvement in revenue and gross profit.
The company generated a positive cash flow of N1.76 million from investing activities (2023: negative N1.37 million). There was no financing cash flow activity in 2024, compared to a net outflow of N2.01 million in 2023.
The absence of new borrowing in 2024 may reflect tightened credit access, high interest rates, or strategic restraint due to existing leverage. Interest was accrued but not paid, possibly indicating delayed obligations.
Closing cash balance improved to N21.99 million from N16.74 million. Despite losses, cash was preserved through careful working capital management, cost control, and restrained investment/financing.
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