Best performing consumer goods stocks in January 2022

At the end of January 2022, the Nigerian Exchange Limited (NGX) ended the month on a positive note amidst buy-interests and sell-pressures as the bulls dominated proceedings to suppress sell-pressures in the market.

According to data from the Exchange, the ASI (All share Market Index) appreciated by 9.15% to close the month of January at 46,624.67 points from 42,716.44 points at the end of December and the Market cap increased by N3.09 trillion during the month.

Month-on-month, Academy Press Plc led 63 advancers surpassing 30 losers led by SUNU Assurance Plc, taking the market breadth to 2.10x and reflecting a bullish market.

Consumer Goods Performance

However, the Consumer Goods Index (CGI) depreciated by 2.48% during the period under review, from 589.23 points to 574.64 points. This decline, despite the positive performance of the broad market, can be attributed to the depreciation in the share price of Nestle Plc, which is a company worth over a trillion. This means an uptick or a slight decline in the share price of the company can largely affect the index movement.

Focusing on the performance of stocks under the Consumer goods sector, we see that out of the 19 companies under the CGI, seven (7) increased in share price while five (5) declined and 7 remained unchanged.

We place focus on the best 5 performing consumer goods stocks in the month under review. These stocks were selected based on their price-performance from month-to-date and are represented by the percentage gained.

Guinness Nig Plc – 24.49%

The shares of Guinness Plc, the third most capitalized brewery on the exchange, gained 24.49% in price in the period under review, from N39.00 to N48.55. The company enjoyed buy-interests which drove up the market capitalization by N20.92 billion to stand at N106.34 billion.

Recently, the company posted its Q2 Unaudited Financial Statement, revealing a 50.83% growth in revenue from N72.35 billion to N109.12 billion in the current period.

The breweries company reported a profit after tax of N8.82 billion, reflecting a growth of 2,878.91% from a loss of N317.42 million in the corresponding period of 2020.

The shares of Guinness Nig Plc currently trade at N48.55.

International Breweries Plc – 15.15%

International Breweries Plc share price enjoyed investors positive sentiment as it appreciated by 15.15% during the period under review, from N4.95 to N5.77 at the end of January.  The brewery is the second most capitalized after Nigerian Breweries, with a capitalization of N155.80 billion.

The company’s most recent 9-months financial result for the period ended September 30, 2021, revealed that the brewery grew its Revenue by 34.07% from N95.77 billion to N128.40 billion in the period being reviewed.

However, the company recorded a net loss of N13.52 billion from a loss after tax of N10.88 billion. The shares of the company currently trades at N5.80 and has gained 17.17% from year-to-date.

Presco Plc 9.97%

The share price of Presco Plc, an industry peer with Okomu oil, grew by 9.97% during the period under review, from N87.80 per share to N96.55 per share, taking the market capitalization up by N8.75 billion within the month.

The growth in the share price of the company can be attributed to positive sentiment towards the company in anticipation of positive results.

Presco Plc’s FY 2021 result revealed a 97.68% growth in revenue from N23.89 billion in 2020 to N47.23 billion in the current period. The company also reported a 258% surge in net profit of N18.87 billion from N5.26 billion in the corresponding period of 2020.

The shares of the company trades at N105.00 and year-to-date has appreciated by 19.59%.

NNFM Plc – 8.13%

Northern Nig Flour Mills Plc share price grew from N8.00 per share to N8.65 per share at the end of January, reflecting a percentage growth of 8.13%. The growth in the price of the company’s shares can be attributed to buy-interests witnessed in the overall market during the period.

The company’s Q3 result for the period ended December 2021 filed with the exchange revealed that revenue for the period appreciated by 58.88% from N2.11 billion in Q3 2020 to N3.35 billion in the current period. Also, gross profit grew significantly by 538.70% to stand at N349 million.

Similarly, Post-tax profit was recorded as N52.56 million, from a loss of N95 million in Q3 2020.

The shares of the company have gained 12.50% from year-to-date and currently trades at N9.00 per share.

Flour Mills Plc – 0.71%

The share price of Flour Mills Plc, an industry peer with Honeywell Flour Mills and NNFM, enjoyed the positive sentiment around the market as it increased by 0.71% from N28.35 per share to N28.55 per share at the end of January.

Flour Mills Plc’s Q3 result for the period ended December 31, 2021, showed that top and bottom-line income performed well as revenue grew by 50.90% from N200.23 billion to N302.16 billion. In the same vein, Profit after tax increased by 15.38% from N5.65 billion in Q3 2020 to N6.52 billion in the current period.

In addition, the company’s share price has grown by 1.76% from year-to-date and currently trades at N28.85 per share.

Other stocks that ranked amongst the best-performing consumer goods stocks for the month include;

Dangote Sugar Plc – 0.57%
Champion Breweries Plc – 0.43%

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