The NGX Consumer Goods index is designed to provide an investable benchmark to capture the performance of the consumer goods sector, which comprises the most capitalized and liquid companies in food, beverage and tobacco.
Despite market uncertainties and volatility arising from macroeconomic changes, the Nigerian equities market just like in 2021 has so far fared well. While the NGXASI has YtD return of +23.59 per cent, the Consumer Goods Index has YtD of +9.78%. Recall that in 2021, the NG market ended with a positive return of 6.7%, driven by local institutional and retail investors.
The Consumer Goods Index comprises 15 companies with combined total assets of N3.129 trillion as at March 31, 2022. As at close of trading on June 10, 2022, the Index’s market capitalization week-on-week, dipped by -0.11% (net loss of N2.83 billion) to N2,637.16 billion from N2,639.99 billion on June 3, 2022. PZ topped the gainers’ list; appreciating by 3.1%.
All the companies have released their Q1 2022 results, with Four Mills reporting the highest revenue of N302,159.09 Million, 34.47% of the companies’ combined revenue of N876,592.39 million. However, on net profit margin, Nestle Plc recorded the highest earnings of N17,977.76 million, while Honeywell Flour reported a loss after tax of -N143.85 million in Q1 2022.
McNichols PLC +166.2%
Top on the list is McNichols Plc. McNichols closed its last trading day (Friday June 10, 2022) at N2.05 per share on the NGX. McNichols began the year with a share price of N0.77 and has since gained 166.23% on that price valuation to beat the other 14 Consumer Goods Sector stocks and fourth on the NGX in terms of year-to-date performance.
Shareholders can be optimistic about MCNICHOLS knowing the stock equally has an outstanding 1-year return of 156.25%, behind Guinness (211.53%).
McNichols is the 85th most traded stock on the NGX over the past three months (March 10 – June 10, 2022). It traded a total volume of 14.9 million shares in 517 deals, valued at N29.4 million over the period.
In terms of dividend payment (year 2021) McNichols Plc is 14th on the Consumer Goods Sector. The company declared a final dividend of 3 kobo for every share of 50 kobo and a bonus of 6 shares for 5 shares previously held for shareholders to be paid on August 4, 2022 for members whose name appear in the register of members as at the close of business on 30th of June 2022 for 2021 financial year.
From the financial reports, the company is profitable, growing earnings by 74.70% in Q1 2022. However, McNichols Plc reported the lowest revenue (N217 million) and earnings (N7.25 million) in Q1 2022.
McNichols Plc processes food. The growth board company produces granulated sugar, cube sugar, icing sugar, baking sugar, chocolate powder, custard powders and corn flakes. The company was incorporated on April 24, 2004 and listed on the NGX on December 18th 2009. The company currently is the 136th most valuable stock on the NGX with a market capitalization of N669.74 million, which makes about 0.0023% of the NGX equity market and 0.03% of the Consumer Goods Sector.
Guinness Nigeria PLC +132%
Second on the list is Guinness Nigeria Plc with YtD and 1yr return of +132% and +212% respectively. Guinness Plc closed its last trading day (Friday, June 10, 2022) at N90.50 on the NGX. Guinness began the year with a share price of N39 and has since gained 132% (N51.50 per share) on that price valuation, ranking it 2nd on Consumer Goods Index and sixth on the NGX in terms of year-to-date performance.
Guinness is fourth on Consumer Goods Sector and second to Nigeria Breweries, industry-wise in terms of Q1 2022 reported earnings.
The company reported Q1 2022 earnings of N6.456 billion and revenue of N50.320 billion.
The company is the 63rd most traded stock on the NGX over the past three months (March 10 – June 10 2022), with a total volume of 48.8 million shares in 4,989 deals valued at N4.32 billion.
Guinness Nigeria Plc is a beer-brewing company that packages and markets beverages such as Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Gordon’s Spark, Smirnoff Ice, Harp Lager Beer, etc. The company became the first Guinness brewery outside of the British Isles when the first bottle of Guinness Foreign Extra Stout was brewed in November 1963 and few years later, on January 2, 1965 was listed on the Nigerian Stock Exchange and currently the 17th most valuable stock on the NGX with a market capitalization of N198 billion, which makes about 0.691 per cent of the Nigeria Stock Exchange equity market and 6.00 per cent of the NGX Consumer Goods Sector.
However, investors should note that Guinness has a low dividend (N0.46 per share), which places the company in 8th position on the Sector’s dividend log and dividend yield (0.51 per cent), 13th on the log.
PZ Cussons Nigeria +113%
PZ closed its last trading day, June 10, 2022, at N13.00 per share on the NGX. The company began the year with a share price of N6.10 and has since gained 113.11% on that price valuation, ranking it third on the NGX Consumer Goods sector and seventh on the NGX market in terms of year-to-date performance. The stock has accrued 116.67% over the past one-year period, the 3rd best on NGX Consumer Goods Sector.
Also, over the past three months, PZ is the 54th most traded stock on the NGX. It has traded a total volume of 72.2 million shares in 3,257 deals valued at N754 million over the period.
PZ’s last declared dividend of N0.25, which is 0.75%, places the company in 12th position on the NGX Consumer Goods Sector in terms of dividend for the 2021 financial year. However, the company is better positioned (9th) in terms of dividend yield (1.98 per cent).
PZ manufactures and distributes household products. The company was incorporated on April 12, 1948 and listed on the NGX on January 1, 1970. PZ Cussons is currently the 33rd most valuable stock on the NGX with a market capitalization of N51.5 billion, which makes about 1.96%of NGX Consumer Goods Sector capitalization and 0.18 per cent of the NGX equity market.
Cadbury Nigeria +96%
Cadbury Nigeria is currently the 41st most valuable stock on the NGX with a market capitalization of N32.40 billion, which makes about 1.23% of the NGX Consumer Goods sector total capitalization and 0.113 per cent of the NGX equity market.
Cadbury Nigeria current share price is N17.25. The company closed its last trading day on June 10, 2022 at N17.25 per share, recording a 0.88 per cent gain week-on-week over its Friday, June 3, 2022 closing price of N17.10 per share. Cadbury began the year with a share price of N8.80 and has since gained 96.02 per cent on that price valuation, ranking it 4th on the NGX Consumer Goods Sector and 10th on the NGX market in terms of year-to-date performance. Cadbury shareholders can be optimistic about Cadbury knowing that the stock has gained 114.29 per cent over the past 1-yr period, the 5th best on NGX Consumer Goods Sector.
Over the past three months (March 10 – June 10, 2022), Cadbury has traded a total volume of 83.3 million shares in 3,672 deals, valued at N1.16 billion making the company the 52nd most traded stock on the NGX over the period.
Based on the company’s last reported dividend of N0.50, dividend yield is 2.90 per cent, the 6th on the NGX Consumer Goods Sector in terms of dividend yield. The company reported Q1 2022 revenue of N12.788.66, the 11th on NGX Consumer Goods sector, but 9th in terms of earnings (N1,541.55 million) for the period.
Champion Breweries +56%
Champion Breweries is currently the 44th most valuable and 51st most traded stock on the NGX with market capitalization of N28.7 billion, which makes about 1.09 per cent of the NGX Consumer Goods Sector total market capitalization and 0.1 per cent of the NGX equity market. Over the past three months, Champion has traded a total volume of 84.3 million shares in 2,129 deals valued at N278 million.
Champion closed its last trading day on Friday, June 10, 2022 at N3.67 per share on the NGX. It began the year with a share price of N2.35 and has since gained 56.17 per cent, ranking 5th on the NGX Consumer Goods Sector and 19th on the NGX market in terms of year-to-date performance. For a 1-yr period, Champion Breweries has accrued 103.89 per cent. However, investors should take caution of CHAMPOIN’s recent poor performance, having lost 16 per cent of its value in the post four weeks.
Other year-to-date gainers are:
- International Breweries (+48.48 per cent),
- Northern Nigeria Flour Mills (+47.22 per cent),
- Flour Mills (+42.93 per cent),
- Nigerian Breweries (+31.25 per cent0,
- Vitafoam Plc (+10.12 per cent),
- Unilever (+3.45 per cent),
- Dangote Sugar (+2.06 per cent),
Curiously, Honeywell Flour Mills, which accrued +155.81 per cent over a 1-yr period has lost 2.94 per cent of its value year-to-date just like Nascon and Nestle that have lost 4.55 per cent and 10.55 per cent respectively of its value YtD.