The NGX Consumer Goods Index witnessed a 90.39% appreciation in 2023, as some consumer goods companies recorded impressive showings in the NGX during the year.
In the face of challenging macroeconomic conditions in Nigeria in 2023, a major class of casualties were manufacturers, a class consumer goods companies belong to. However, despite the generally challenging situation, some stocks within that sector displayed resilience. For many of the stocks in the category, 2023 was an unfavourable year.
Nairametrics has tracked some of the best consumer goods stocks in the NGX in 2023, and topping the list is NASCON Allied Industries.
8. Nigerian Breweries Plc – -12.2%
Nigeria’s first brewing company, Nigerian Breweries Plc posted a bearish performance in the NGX in 2023, as its share price declined by 12.2%. Despite the negative showing by the company, its appearance on this list reflects the overall performance of consumer goods companies in the NGX in 2023.
In 9M 2023, the company recorded a net loss of N56.8 billion, representing a 472.4% year-on-year decline from the same period in 2022. During the period, the company recorded an N86.8 billion loss due to foreign exchange revaluation.
7. Guinness Nigeria Plc – -4.8%
Guinness Nigeria’s share price posted a yearly decline of 4.8% in 2023, as it closed at N66.00, after starting 2023 at N69.30.
The company which operates a fiscal calendar cycle of July-June recorded a net income of N2.6 billion in Q1 2024, representing a year-on-year decline of 5.56% from the corresponding quarter in the previous fiscal year.
6. Nestle Nigeria Plc – 0.0%
Nestle Nigeria, one of Nigeria’s biggest food companies recorded no share price movement in 2023. The company started and ended 2023 at N1100, however, on June 1, it hit a year high of N1250.
2023 was also an unfavourable year for the company as they recorded a net loss for the first time in over five years. In 9M 2023, the company recorded a net loss of N43.1 billion, marking a 207% year-on-year decline from the same period in 2022.
The company’s financial performance in 2023 has put a halt in the company’s record of constant dividend payments. The losses accumulated by the company were driven by a foreign exchange revaluation loss of N122.9 billion in 9M 2023.
5. International Breweries Plc – +2.1%
International Breweries recorded a modest 2.1% share price gain in 2023, as it opened and closed 2023 at a share price of N4.70 and N4.80 respectively.
Just like other breweries, International Breweries suffered losses due to foreign exchange revaluation, causing it a post a net loss of N28.6 billion in 9M 2023. This figure marks a 916% year-on-year decline from the corresponding period in 2022.
4. Flour Mills of Nigeria Plc – +16.4%
The biggest food company in Nigeria in terms of revenue, Flour Mills of Nigeria recorded a share price appreciation of 16.4%. Its shares opened and closed in 2023 at N28.40 and N33.05 respectively.
However, the company’s financial performance did not match up with its market performance, as it recorded a loss after tax of N8.5 billion during the six months ending September 2023, representing a 249.5% year-on-year decline from the corresponding period in the previous fiscal year.
Like other consumer goods companies, FMN also suffered remarkable losses due to the devaluation of the Naira, as the company recorded a foreign exchange loss of N51.2 billion in the six months ending September 2023.
3. Cadbury Nigeria Plc – +59.7%
Cadbury Nigeria Plc, makers of popular food brands, Bournvita and TomTom recorded a modest share price gain of 59.7% in 2023. The stock opened and closed in 2023 with share prices of N11.90 and N19.00 respectively.
Despite the impressive market performance, Cadbury Nigeria recorded a net loss of N10.2 billion in 9M 2023, representing a year-on-year decline of 463.4% from the corresponding period in 2022. A previous Nairametrics report also noted that Cadbury had accrued foreign exchange losses of N20.9 billion in H1 2023.
2. BUA Foods Plc – +197.5%
Nigeria’s most capitalized food company, BUA Foods’ share price grew by an impressive 197.5% in 2023. The company started and closed 2023 with share prices of N65.00 and N193.40 respectively.
Unlike other consumer goods companies, BUA Foods produced a resilient financial performance in 9M 2023. The group recorded a net income of N105.6 billion in 9M 2023, representing a 53.6% year-on-year gain from the corresponding period in 2022.
Despite recording a foreign exchange loss of N33.2 billion in 9M 2023, the company’s operating profit of N156.9 billion provided sufficient buffer to withstand the loss.
1. NASCON Allied Industries Plc – +384.2%
NASCON Allied Industries, promoted by Dangote Group was the best-performing consumer good stock in the NGX in 2023. The stock opened and closed 2023 at N11.10 and N51.40 respectively.
The company’s remarkable market performance was also matched by its financial performance. It posted a net income of N11 billion in 9M 2023, representing a year-on-year growth of 282% from the corresponding period in 2022.
Unlike other consumer goods companies, NASCON recorded a marginal foreign exchange loss of N69,000.
