The Nigerian Exchange Limited (NGX) ended the month of February 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 1.65% to close the month of February at 47,394.53 points from 46,624.67 points at the end of January and the Market cap increased by N418.72 billion during the month.
Month-on-month, RTBriscoe Plc led 61 advancers, surpassing 30 losers led by CAVERTON Plc, taking the market breadth to 2.03x and reflecting a bullish market.
Consumer Goods Performance
Mirroring the broad market, the Consumer Goods Index (CGI) also appreciated by 2.32% during the period under review, from 574.64 points to 588.00 points. The positive performance of the Index can be attributed to the general positive sentiments of investors towards the equity market in the period, as well as the fact that some of the companies posted impressive profit growth for the full-year 2021, suggesting to investors that they should expect similar impressive returns.
Focusing on the performance of stocks under the Consumer goods sector, we see that out of the 16 companies under the CGI, seven (7) increased in share price while four (4) declined and 5 remained unchanged.
We have placed 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 – 40.06%
The shares of Guinness Plc has enjoyed positive run since the beginning of the year, gaining 24% in January alone. The third most capitalized brewery on the exchange, then went on to gain 40.06% in price in February, from N48.55 to N68.00. The company enjoyed buy-interests which drove up the market capitalization by N42.60 billion to stand at N148.95 billion.
Recently, the company posted its HY 2021 result, reporting a 50.83% growth in revenue from N72.35 billion in HY 2020 to N109.12 billion in the current period. The breweries company reported a profit after tax of N8.82 billion from a loss of N317.42 million in the corresponding period of 2020.
The shares of Guinness Nig Plc currently trade at N65.00 and has a year-to-date value of 66.67%.
Northern Nig Flour Mills Plc – 25.43%
NNFM Plc share price enjoyed investors’ positive sentiment as it appreciated by 25.43% during the period under review, from N8.65 to N10.85 at the end of February. The FMCG company is the third most capitalized miller after Flourmills and Honeywell Flour Mills, with its capitalization currently at N1.93 billion.
The company’s most recent 9-months financial result for the period ended December 30, 2021, revealed that its Revenue grew by 76.04% from N6.45 billion to N11.36 billion in the period being reviewed.
However, the company recorded astounding growth in profit of 342%, from N51 million in 2020 to N226 million at the end of the nine-month period. The shares of the company currently trades at N10.85 and has gained 35.63% from year-to-date.
Honeywell Flour Mills – 15.59%
The share price of Honeywell Flour Mills Plc, an industry peer with NNFM and Flourmills Plc, grew by 15.59% during the period under review, from N3.40 per share to N3.93 per share, taking the market capitalization up by N4.20 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.
Honeywell Flour Mills Plc’s FY 2021 result revealed a 22% growth in revenue from N82.13 billion in 2020 to N99.88 billion in the current period. However, the company reported a 35% decline in net profit of N209 million from N323 million in the corresponding period of 2020.
The shares of the company trades at N3.60 and year-to-date has appreciated by 5.88%.
Flourmills Plc – 12.08%
Flourmills Plc share price grew from N28.55 per share to N32.00 per share at the end of February, reflecting a percentage growth of 12.08%. The growth in the price of the company’s shares can be attributed to buy-interests witnessed in the overall market during the period.
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.
The shares of the company have gained 12.87% from year-to-date and currently trades at N32.00 per share.
Nascon Allied Industries Plc – 9.92%
The share price of Nascon Allied Plc, an industry peer with Union Dicon, enjoyed the positive sentiment around the market as it increased by 9.92% from N13.1 per share to N14.40 per share at the end of February.
The company’s Audited FY 2021 result for the period ended December 2021 filed with the exchange revealed that revenue for the period appreciated by 18.81% from N28.01 billion in FY 2020 to N33.28 billion in the current period. Also, gross profit grew slightly by 3.43% to stand at N11.96 billion.
Similarly, Post-tax profit was recorded as N2.97 billion, from N2.69 billion in FY 2020.
In addition, the company’s share price has remained unchanged from year-to-date and currently trades at N13.20 per share.
Other stocks that ranked amongst the best-performing consumer goods stocks for the month include;
- Cadbury Nigeria Plc – 2.87%
- International Breweries Plc – 0.88%
