The Nigerian Exchange Limited (NGX) ended the month of October 2021 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 Index) appreciated by 4.52% to close the month of October at 42,038.60 points from 40,221.17 points at the end of September and the Market Cap increased by N982.97 billion during the month.
Month-on-month, University Press Plc led 56 gainers surpassing 29 losers led by Regency Assurance Plc, taking the market breadth to 1.93x and reflecting a bullish market.
Consumer Goods Performance
In the same vein, the Consumer Goods Index (CGI) appreciated by 0.41% during the period under review, from 567.17 points to 569.51 points. Focusing on the performance of stocks under the Consumer goods sector, we see that out of the 18 companies under the CGI, seven (7) increased in share price while seven (7) declined and 4 remained unchanged.
In our usual style, Nairametrics, in this article, will focus on the five best-performing consumer goods stocks in the month under review. These stocks were selected based on their price-performance month-to-date and are represented by the percentage gained.
Presco Plc – 10.90%
The share price of Presco Plc, an industry peer with Okomu Oil, enjoyed the positive sentiment around the market as it increased by 10.90% from N80.25 per share to N89.00 per share at the end of October 2021.
Presco Plc’s third quarter result showed that top and bottom-line income performed impressively as revenue grew significantly by 133.77% from N5.46 billion to N12.77 billion. In the same vein, profit after tax surged by 469.76% from N640.37 million in Q3 2020 to N3.65 billion in the current period.
In addition, the company’s share price has grown by 25.44% from year-to-date and currently trades at N89.00 per share.
Cadbury Nig. Plc – 18.13%
Cadbury Nig. Plc share price grew from N8.00 per share to N9.45 per share at the end of October, reflecting a percentage growth of 18.13%. The growth in the price of the company’s shares can be attributed to positive sentiment towards the company in anticipation of positive results.
The company’s Q3 result for the period ended September 2021 filed with the exchange revealed that revenue for the period appreciated by 16.66% from N9.88 billion in Q3 2020 to N11.52 billion in the current period. Also, gross profit grew by 74.74% to stand at N3.45 billion.
Similarly, post-tax profit was recorded as N2.03 billion, reflecting an increase of 538.77% from N317.72 million in Q3 2020.
The shares of the company have gained 3.89% from year-to-date and currently trades at N9.45 per share.
Okomu Oil Plc – 19.68%
The share price of Okomu Oil Palm grew by 19.68% during the period under review, from N112.80 per share to N135.00 per share, taking the market capitalization up by N21.18 billion within the month.
The growth in the share price of the company can be attributed to buy-interests witnessed in the overall market during the period.
Okomu Plc’s third quarter result for the period ended September 2021 revealed that turnover for the three months increased by 45.66% from N5.09 billion in the corresponding quarter of 2020 to N7.42 billion in the current period.
In the same vein, profit after tax grew significantly by 108.51% from N991.69 million to N2.07 billion. The shares of the company trades at N135.00 and year-to-date has appreciated by 48.35%.
Guinness Nig Plc – 22.64%
Guinness Nig Plc share price enjoyed investors positive sentiment as it appreciated by 22.64% during the period under review, from N29.60 to N36.30 at the end of October. The brewery is the second most capitalized after Nigerian Breweries, with a capitalization of N87 billion.
The Q1 financial result for the period ended September 30, 2021, revealed that the brewery grew its revenue by 58.10% from N30.02 billion to N47.47 billion in the current period.
Similarly, net income surged by 580.47% to stand at N4.04 billion from a loss after tax of N841.65 million. The shares of the company currently trade at N39.90 and has gained 110.00% from year-to-date.
Champion Breweries Plc – 43.54%
The shares of Champion Breweries, the third most capitalized brewery on the exchange, gained 43.54% in price in the period under review, from N2.09 to N3.00. The growth in share price was largely due to the mandatory takeover bid launched by Heineken, for the acquisition of up to 1,196,799,164 ordinary shares from the other shareholders of Champions Breweries Plc, during the month.
Recently, the company posted its nine-month results for the period ended September 2021 which revealed that revenue for the period grew by 44.72% from N4.89 billion to N7.08 billion.
In addition, profit after tax increased significantly by 969.45% from N59.41 million in the corresponding period of 2020 to N635.34 million in the current period.
The shares of Champion Breweries currently trade at N2.82, and has appreciated by 227.91% from year-to-date.
Other stocks that ranked amongst the best-performing consumer goods stocks for the month include:
International Breweries – 9.38%
Nigerian Breweries – 7.07%
What to expect
As we proceed into the month of November, it is expected that the investing public will react to a couple of market triggers including the release of Q3 and nine-months earnings result by companies, Inflation rates; and Bond market prices and yields.