Analyst: Oluebube Nwosu* o.nwosu@vetiva.com Target price: ₦1006.52 Rating: HOLD TL;DR Q4 revenue jumped 33% y/y to ₦150.5 billion. Net finance expenses surged 8x in Q4’23, reaching ₦79.6 billion. Given a mixed bag performance and outlook, we maintain a HOLD rating Price jump combats volume decline Nestle Nigeria showcased remarkable resilience in Q4’23, achieving a substantial...
Analyst: Oluebube Nwosu* o.nwosu@vetiva.com Target price: ₦5.90 Rating: HOLD Pricing increases elevate topline In the fourth quarter of 2023, International Breweries demonstrated a substantial 38% y/y growth in revenue, reaching ₦80.5 billion. This impressive increase was due to higher prices across the firm’s product lines. While INTBREW has maintained its lowest price strategy, its products’...
Analyst: Oluebube Nwosu*o.nwosu@vetiva.comTarget price: ₦35.91Rating: SELL Q3 revenue growth expands gross marginIn the third quarter of FMN’s fiscal year 2024 (Oct to Dec ‘23), the company exhibited an exceptional performance, with revenue skyrocketing to ₦594.6 billion, a substantial 51% increase compared to Q3’23. This remarkable growth came about by a mix of volume growth and...
The production of household brand products in the Sub-Saharan African (SSA) region faces a series of challenges within the fast-moving consumer goods (FMCG) sector… Recognizing the escalating macroeconomic challenges, the FMCG sector stands at a pivotal juncture as it approaches 2024. Persistent challenges from 2023, such as inflation and energy supply constraints, are anticipated to...
Food & Beverage drives manufacturing growth The manufacturing sector remains vital to the overall economy, contributing 10.13% to GDP. Apart from Q3’22 where growth was negative at 1.91%, the Nigerian manufacturing sector has shown positive growth in the last two years, growing at a quarterly average of 2.79%. Across specific sub-sectors, this growth was driven...
Our conviction stocks closed higher in November, gaining 1.8% m/m, underperforming the ASI by 1.2ppts. Our picks have yielded a return of 71.2% YTD, outperforming the ASI by 32.0ppts. Starting with the Consumer Goods sector, it was a mixed month as DANGSUGAR eased 7.94% m/m, while NESTLE (+9.5% m/m) closed in the green. All in,...