BUA Cement Plc (NGX: BUACEMENT, TP— UR*) reported a 351.4% YoY growth in earnings in its Q1'25 unaudited results, driven by strong revenue growth, efficient cost management, and a significant reduction in exchange losses.
Transcorp Power Plc (NGX: TRANSPOWER—TP: UR), in its unaudited Q1'25 results, delivered a strong financial performance, posting a PAT growth of 62.0% YoY to reach N32.6 billion, with an EPS of N4.35 (vs N2.69 in Q1'24). By our assessment, the company's robust topline performance was sufficient to assuage pressures from cost of sales (+52.4% YoY), impairments (+178.6% YoY), and administrative expenses (+74.1% YoY), amongst other cost lines.
Lafarge Africa Plc (NGX: WAPCO, TP - UR) announced an impressive 836.7% YoY surge in earnings in its Q1’25 results, which reflected robust revenue growth, finance income, and foreign exchange gains. The low earnings base in Q1’24, driven by substantial FX losses, also contributed to the magnitude of earnings growth.
Guinness Nigeria Plc (NGX: GUINNESS, TP: N96.57, BUY) reversed its prior loss-making position in its unaudited 9M'24/25 results, reporting a net profit of N6.7 billion (vs a loss of N61.7 billion in 9M'23/24). This return to profitability was largely driven by strong topline growth and a significant reduction in foreign exchange losses. The result also marks a notable rebound from the company’s weak Q1'24/25 performance, underscoring an improving earnings trajectory.
NESTLE's strong brand loyalty, export expansion, and easing cost pressures support a return to profitability in 2025, with our projected PAT at N92.7 billion. Potential asset revaluation could also strengthen the company's books, with positive passthrough to valuation. Hence, we maintain a BUY rating on NESTLE with a 12-month Target Price ("TP") of N1,518.20 (vs N1,099.89 previously), reflecting a 51.8% upside.
In the last few years, the Fast Moving Consumer Goods (FMCG) sector hasbeen saddled with a plethora of issues, including foreign exchangevolatility, insecurity in food-producing states that pressured domestic inputprices, and unfavourable government policies.
