Consumer Goods Sector Drives NGX Growth With 40.65% Increase

Nigerian Exchange (NGX) Consumer Goods index has recorded a growth of 40.65 per cent year-to-date as of June 5, 2025, driven by strong demand for essential goods and investor confidence in the sector.

This impressive performance reflects the resilience of Nigeria’s consumer goods industry, despite economic challenges. The growth in the index is a positive indicator for the overall market, suggesting that consumer goods companies are performing well and contributing to the country’s economic stability

The sector outshined other indices to emerge as the best performing index on investors surge demand for Nestle Nigeria, Nigerian Breweries, among other quoted companies on the bourse.

The Consumer Goods Index has outperformed the major index, the NGX All-Share Index closed the period under review with a year-to-date gain of 11.36 per cent.

NGX Lotus II rose by 22.75 per cent Y-t-D, while NGX Pension index rose by 19.98 per cent. NGX Banking index appreciated by 12.32 per cent, while NGX 30 index rose by 10.73 per cent.

On the other hand, the NGX Oil & Gas index declined by 11.33 per cent. NGX Industrial Goods index fell by 2.42 per cent, while NGX Insurance index dropped by 1.43 per cent.

Nestle Nigeria, the most capitalised stock in the NGX Consumer Goods Index recorded a growth of 81.77 per cent to N1,590.50 per share as of May 30, 2025 from N875 per share it closed 2024, following an impressive first quarter ended (Q1) 2025 unaudited result and accounts.

Investors reacted to the leading Fast-Moving Consumer Good (FMCG) Q1 2025 results that showed N51.15 billion profit before tax in Q1 2025 from a loss before tax of N196.09 billion declared in Q1 2024.

Capital market analysts have attributed the soar demand for companies in the Consumer Goods Index to recovery in Q1 2025 corporate earnings, stressing that these companies overcame the numerous macroeconomy challenges of 2023 & 2024 full year to generate profit and possibility of declaring dividend conceivable in 2025.

The foreign exchange policy by the Central Bank of Nigeria (CBN) of 2023 led to a sharp depreciation of the naira, adversely affecting companies in the Consumer Goods index.

The review of companies in the NGX Consumer Goods Index revealed that Golden Guinea Breweries was the only company that declined in stock price. For the YtD review, investors’ average return in Golden Guinea Breweries dropped by 17.8 per cent to close May 2025 at N7.10 per share. Investors average return in Honeywell Flour grew significantly by 233.3 per cent to close at N21.00 per share from N6.30 per share on the NGX, while Northern Nigeria Flour Mills (NNFM) recorded a growth of 216.4 per cent

Analysts at Cordros Securities in a report urged investors to buy most stocks in the Consumer Goods Index, maintaining that an optimistic outlook for the food companies such as Nestle Nigeria, NASCON, given the essential nature of their products and their ability to implement price hikes more effectively than their peers, supported by a  favourable price/volume mix.

“These companies also benefit from strong market share, extensive distribution networks, and consumer demand resilience, making them less affected by shifts in consumer purchasing power, providing a solid advantage in the medium term,” the report explained.

Speaking, the vice president Highcap Securities Limited, David Adnori explained that the growth in NGX Consumer Goods Index is on the backdrop of massive interest in Nigerian Breweries, Nestle Nigeria, Cadbury Nigeria, among other companies quoted in the index.

He added that price sensitive information in June 2025 may continue to play a critical role in the companies’ downward or upward movement on the Exchange.