Nigeria | NGX

In its 9M 2023 earnings result, Nestle’s Revenue grew by 18.93% y/y to N396.59bn from N333.47bn in 9M 2022. The food segment grew by 27.0% y/y to N254.38bn in 9M 2023 from N200.26bn in 9M 2022 and contributed the most to the company’s revenue by (64.1%). The company’s beverage segment (Milo, Nescafe, Nido and others) also grew by 6.8% y/y to N142.21bn in 9M 2023 from N133.22bn in 9M 2022. We forecast Revenue growth of 13% and 14% y/y from its Food and Beverage segments and project FY 2023 Revenue growth of 13% y/y to N506.65bn.

Lafarge Africa reported a 7.1% y/y growth in Revenue to N289.08bn in 9M 2023 from N269.85bn in the prior period (9M 2022). However, on a q/q basis, Revenue was down 13.7% to N91.40bn in Q3 2023 from N105.86 in Q2 2023. The broad-based y/y growth in cement sales (up 7% to N279.77bn), aggregate and concrete sales (up 10.9% to N8.87bn), and other products (up 14% to N437m) contributed to the marginal increase in topline growth in 9M 2023. 

Flour mills of Nigeria Plc’s (Flourmills) earnings have been growing steadily in recent years. In its H1 2024 (ended September 2023), the company reported a 33.87% y/y growth in Revenue to N964.65bn. This growth was driven by a combination of factors, including increased sales volumes, higher product prices, and improved operational efficiency. 

Guinness Nigeria Plc’s (GUINNESS) Q1 2024 numbers showed resilience across key performance metrics. The renowned foreign extra stout brewer recorded double-digit Revenue growth of 12.7% y/y to N59.54bn (Q1 2024) amidst the nation’s high inflation which has weakened consumer purchasing power. Sales volumes remained pressured in the face of stiff competition, and as consumers persist in adapting their spending preferences towards essentials. However, we believe the company’s performance will improve in the next quarter (Q2) as holiday season demand drives sales. 

BUA Cement’s +27.92% y/y Revenue growth in 9M 2023 was primarily driven by an increase in price and sales volumes. BUA Cement reported increases in prices in 9M 2023 with average cement price rising by 21.4% to N68,540/ton from N56,468/ton in 9M 2022 while sales volumes closed 9M 2023 at 4.90 million MT from 4.65 MT in 9M 2022, indicating a 6.52% increase. Net Income increased by 2.8% y/y to N76.07bn in 9M 2023 from N74.02bn in 9M 2022.

October was mainly characterised by bullish sentiments in the bourse, with the NGX ASI (+4.3% MoM) recovering from losses in September. The October rebound was supported by better-than-expected earnings and corporate actions, which masked concerns over the MSCI's proposed reclassification of Nigeria to a Standalone Status.

Download (205.11 KB)