The Nigerian All Share Index closed the first half of 2022 with a gain of about 21.17% year to date (YTD) making it one of the best-performing stock markets in the world.
The equity trading recorded a gain of N5.639 trillion during the half-year ended June 30, 2022, as investors continue to increase their buying pressure, especially on blue-chip stocks.
Positive sentiments had returned to the local bourse as the release of full-year 2021 and Q1’22 corporate earnings bolstered buying interests in dividend-paying stocks.
Though consumer goods stocks during the half-year ended June 30, 2022 may not have the highest earnings growth or year-over-year revenue but these stocks tend to make up for modest growth with low price volatility, reliable profits, dividends, and defensive positioning.
Consumer goods performance
Checks by Nairametrics revealed that the Consumer Goods Index (CGI) which measures the performance of the consumer companies quoted on the floor of the Nigerian Exchange appreciated by 5.89% during the half-year of 2022, from 589.28 points to 623.99 points.
Market watchers believe that they offer investors safety during recessionary climates, this is because since these companies sell goods such as food and cleaning products that consumers rely on regardless of the state of the economy, they tend to generate solid profits even in weak economies.
According to data obtained by Nairametrics from the NGX which focused on five top-performing consumer goods stocks during the half-year under review, Guinness Nigeria Plc, Cadbury Nigeria Plc, Champion Breweries Plc, PZ Cussons Nigeria Plc and International Breweries Plc made the list of top five best performing firms.
These stocks were selected based on their price performance from year to date and are represented by the percentage gained.
5. International Breweries Plc – 27.27%
Shares of International Breweries Plc have also leveraged from the positive run since the beginning of the year. The brewery company gained 27.27% in price during the half-year, from N4.95 to N6.30 per share.
The company enjoyed buy-interests which drove up the market capitalization to gain N36,263.79 billion to close at N169,231.03 billion at the close of trading on June 30, 2022, from an opening figure of N132,967.24 billion at the beginning of trading on January 4th.
International Breweries Plc (IBPLC) had bounced back to profitability from its loss position, recording N1.9 billion Profit Before Tax (PBT) for the first quarter ended March 31, 2022, representing 152.8% increase from N3.6 billion loss before tax in Q1’21.
The financial statement released to the Nigerian Exchange Limited (NGX) showed that the company’s revenue grew to N52.7 billion during the period, representing a 47.6% increase compared to N38.96 billion reported in Q1, 2021.
The shares of the company currently trades at N5.40 and has gained 9.09% year-to-date.
4. PZ Cussons Plc – 57.37%
The share price of PZ Cussons Nig Plc, grew by 57.37% during the period under review, from N6.10 per share to N9.60 per share, lifting the market capitalisation to gain N13.896.67 billion or 57.37% to close at N38.116.58 billion in June 2022 from the opening figure of N24,219.91 billion.
PZ Cussons Plc’s 9-month financial result that ended February 2022, revealed a profit of N5.64 billion, representing a 455% increase from the prior-year period, as revenue grew by 24.27%.
The period in review witnessed a wave of increase in prices of goods and services, as inflationary pressures affected both consumers and producers. Similarly, producers were faced with a significant increase in the cost of raw materials and general production costs.
A cursory view of the result shows that the company’s revenue in the Q3 period appreciated by 21.46% from N22.60 billion to N27.45 billion in the current period.
Profit growth for the third quarter period, was at 113.60% Q-o-Q, generating a total of N3.07 billion. While pre-tax profit stood at N3.31 billion, representing 92.89% growth quarter on quarter.
PZ Cussons Plc’s earnings per share (EPS) for the period was at N1.42, a 446.15% increase from N0.26 in Q3 2021.
The shares of the company currently trades at N10.40 and has gained 70.49% year-to-date.
3. Champion Breweries Plc – 59.15%
Shares of Champion Breweries Plc have also enjoyed a positive run since the beginning of the year. The brewery company gained 59.15% in price during the half-year, from N2.35 to N3.74. The company enjoyed buy-interests which drove up the market capitalization to gain N10.883 billion to close at N29,282.32 billion at the close of trading on June 30, 2022, from the opening figure of N18,399.32 billion at the beginning of trading on January 4th.
Champion Breweries’ 2021 financial year ended on March 31st 2022 showed a N1.73 billion profit before tax and gross revenue of N3.5 billion.
The company achieved these milestones despite the challenging macroeconomic environment.
In his speech during the company’s 46th Annual General Meeting held in Lagos, Chairman, Champion Breweries Plc, Dr. Elijah Akpan said last year’s performance stood out as a testimony of better times ahead.
The company, he added, sustained its path in attaining profitability within the reporting year.
“Revenue increased with N3.5 billion compared to last year while operating profit rose significantly to N1.74 billion. Profit before Tax increased to N1.73 billion,“ he said.
He recalled that Champion Breweries Plc as a company had gone through tough times in the past and with the cooperation of stakeholders is now in profitable territory.
He noted that the impressive result posted this year is the reward of the combination of several factors including rebranding Champion Beer and Champ Malt as well as a formidable sales force to drive product sales.
The shares of the company currently trades at N3.89 and has gained 65.53% year-to-date.
2. Cadbury Nigeria Plc – 96%
The share price of Cadbury Nig Plc, grew by 96% during the period under review, from N8.80 per share to N17.25 per share, lifting the market capitalisation to gain N15.870 billion or 96% to close at N32.398.99 billion in June 2022 from the opening figure of N16,528.18 billion.
The growth in the share price of the company can be attributed to positive sentiment toward the company’s impressive FY and Q1’22 results.
Cadbury Nig’s Q1 2022 result revealed a 43% growth in revenue from N8.92 billion in 2021 to N12.79 billion in the current period. In addition, the company reported a 538% growth in net profit of N1.54 billion in Q1 2022 from N242 million in the corresponding period of 2021.
The shares of the company currently trade at N17.10 and year-to-date has appreciated by 94.32%.
1. Guinness Nigeria Plc – 132%
The shares of Guinness Nigeria Plc have enjoyed a positive run since the beginning of the year. The brewery firm listed on the NGX and the second most capitalized brewery after Nigerian Breweries has gained 132% in price in the half-year, from N39.00 to N90.50.
The company enjoyed buy-interests which drove up the market capitalization to gain N112,804 billion to stand at N198.229 billion at the close of trading on June 30, 2022, from the opening figure of N85,424.93 billion at the beginning of trading on January 4th.
The company’s 9-month financial result for the period ended March 31st, 2022, revealed that its revenue grew by 38.70% from N114.96 billion to N159.44 billion in the period being reviewed.
However, the company recorded an impressive performance in profit of 731.23%, from N1.84 billion in 2021 to N15.28 billion at the end of the nine-month period. The shares of the company currently trade at N90.50 and have gained 132% year-to-date.
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