Kayode Tokede

Following demand for BUA Foods Plc, among others, the Consumer Goods Index emerged as the best performing indicator on the Nigerian Exchange Limited (NGX) in the first eight months of 2025.

The Index in the period under review appreciated by 84.24 per cent Year-till-Date (YtD), ahead of the benchmark indicator that closed higher at 36.31per cent YtD.

In the period under review, NGX Oil & Gas index and NGX AseM emerged as the two worst performing indices, closing at 12.19 per cent YtD and 2.88 per cent YtD, respectively. 

The consumer goods sector has benefited from a broader market trend of investor rotation into defensive and growth segments, especially during more volatile periods.

THISDAY analysis of trading number showed that most stocks in the NGX Consumer Goods Index witnessed significant price appreciation following a recovery from the ongoing reforms e.g., foreign exchange liberalisation, subsidy removal. Companies in the sector recorded strong first quarter (Q1) ended March 2025 and half year ended June 2025 corporate earnings.

Specifically, the market capitalisation of BUA Foods hits N10.62 trillion as of August 29, 2025, becoming the highest listed company on the bourse amid its stock price gaining 42.2 per cent YtD from N415 per share to N590 per share as of August 29, 2025.

In the period under review, Champion Breweries, Honeywell Flour Mill and Vitafoam Nigeria Plc stock price yield grew significantly amid impressive earnings and positive sentiment trading by investors.

Champion Breweries led the chart with the highest yield of about 354.07 per cent when its stock price moved from N3.81 per share in December 2024 to close August 29, 2025 at N17.3 per share. 

The company swung back into profitability, delivering a profit after tax (PAT) of N2.29 billion, compared to a loss of roughly N387 million in H1 2024.

The firm also reported no foreign exchange (FX) losses in H1 2025, compared with a substantial foreign exchange loss of N910 million in H1 2024.  Additionally, there was N140 million in finance income, which helped bolster the bottom line.

Another company with robust yield was Honeywell Flour Mill with 257.94 per cent growth close August 29, 2025 at N22.55 per share from N6.30per share it closed for trading in 2024.

Key drivers behind the stock rally of Honeywell Flour Mill include explosion in revenue to N277.06 billion in the first nine months of the 2025 fiscal year (ending March), up 123 per cent year-on-year, and already 47per cent higher than full-year 2024 revenue of N188 billion.

The company moved from a N8.83 billion loss to a pre-tax profit of N12.28 billion—a dramatic reversal tied to reduced finance costs and foreign exchange losses

Honeywell Flour Mill’s foreign exchange losses plunged from N25 billion in 2024 to N8.56 billion in the current period. Interest expenses also declined, unlocking N27 billion in operating profit

For Vitafoam Nigeria, its stock price gained 256.1 per cent to close at N81.90 per share as of August 29, 2025 from N23.00 per share it closed for trading in 2024.

The household company recent stock rally is rooted in a robust financial turnaround—driven by soaring revenue, restored profitability, and consistent EPS performance.

This has been further propelled by investor confidence evident in strong sentiment. The company’s dividend declaration also underscores its improving financial position.

For the nine months ending June 30, 2025, Vitafoam reported N 84.87 billion in revenue, up from N 60.49 billion the prior year. Meanwhile, its income swung to N 8.72 billion profit from a N 3.29 billion loss—marking a compelling rebound.

Commenting on the consumer goods index performance, Vice President Highcap Securities Limited, Mr. David Adnori explained that the growth in NGX Consumer Goods Index is on the backdrop of massive interest in BUA Foods, Nigerian Breweries, Nestle Nigeria, Cadbury Nigeria, among other companies quoted in the index.

He added that price sensitive information in June 2025 may continue to play a critical role in the companies’ downward or upward movement on the Exchange.

However, analysts at Cordros Securities in a report had urged investors to BUY most stocks in the Consumer Goods Index. 

The firm in a report maintained an optimistic outlook for the food companies such as Nestle Nigeria, NASCON, given the essential nature of their products and their ability to implement price hikes more effectively than their peers, supported by a favourable price/volume mix.

“These companies also benefit from strong market share, extensive distribution networks, and consumer demand resilience, making them less affected by shifts in consumer purchasing power, providing a solid advantage in the medium term,” the report explained.

In addition, analysts at Afrinvest in a report titled, “2025 Brewery Sector Update Report | Brewing Back to Profitability,” said it anticipated that global brewery performance would be influenced by several key trends: the deepening of premiumisation strategies for flagship brands, and Innovation tailored to Gen-Z preferences.

 “Supply chain decarbonisation, and strategic mergers, acquisitions, and market exit driven by profitability outlooks. These trends are explored in detail in the global industry analysis section,” among several key trends to drive the sector in 2025.  

Analysts at Cordros Capital Limited stated that the earnings performance of Nigerian Breweries underscored combined impact of strong revenue generation, alongside the gains from recovery and process optimisation efforts implemented in 2024.

They said, “The brewer’s performance was supported by reduced FX liabilities through the proceeds from the 2024 Rights Issue and a stable exchange rate during the period”.

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