Morison Industries rode a wave of rising demand in 2024, nearly doubling its revenue as Nigerians snapped up more of its hygiene and pharmaceutical products.
Yet beneath the impressive growth lay a familiar struggle—deepening cost pressures and economic headwinds that kept the company in the red.
Revenue Surge Driven By Product Demand
According to its audited results for the year ended December 31, 2024, Morison grew revenue by 98%, increasing it from ₦145.23 million in 2023 to ₦287.18 million.
Stronger demand for hygiene and pharmaceutical products, along with increased third-party manufacturing, fuelled the growth.
However, the company still recorded a net loss of ₦78.75 million—though this marked an improvement from the ₦98.72 million loss in 2023.
It also trimmed operating losses to ₦59.7 million and reduced its loss before tax to ₦76.96 million.
Rising Costs Erode Gains
Meanwhile, operational costs surged.
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Morison raised its cost of sales by 75% to ₦209.81 million and increased operating expenses to ₦170.7 million.
Distribution and selling expenses jumped by 59% due to inflation and persistent supply chain issues.
Economic Pressures Weigh Heavily
Nigeria’s broader economic headwinds added more strain.
Inflation spiked to 34.8% in December 2024, while naira depreciation and high interest rates pushed up costs and weakened purchasing power.
Consequently, the company paid ₦19.6 million in finance costs but only earned ₦2.34 million in finance income.
Morison Industries Liquidity And Funding Challenges
Additionally, Morison faced liquidity pressure.
Its current liabilities surpassed current assets by ₦438 million, and it accumulated ₦916.28 million in losses.
Shareholders’ funds dropped by 9.1% to ₦781 million.
On a slightly positive note, the company generated ₦3.49 million in operating cash flow and ₦1.76 million from investing activities.
It avoided new borrowing in 2024, likely due to tight credit or strategic caution.
Despite ongoing losses, Morison increased its closing cash balance to ₦21.99 million by managing resources carefully.
