Consumer Goods Take the Lead: NGX Consumer Goods Index Surges 37.44% YtD, Crushing All Other Sectors
The Nigerian Exchange (NGX) Consumer Goods Index has emerged as the best-performing sectoral index in the first five months of 2025, with an impressive Year-to-Date (YtD) gain of 37.44% — far outpacing the NGX All Share Index (ASI), which closed the period with a modest 8.56% gain.
What’s Driving the Surge?
This outstanding performance was fueled by strong investor appetite for major players in the Fast-Moving Consumer Goods (FMCG) sector, most notably:
• Nestle Nigeria Plc, whose share price rocketed by 81.77% from ₦875 to ₦1,590.50, adding ₦567.14 billion in market value
• Nigerian Breweries Plc, up by 78.13%, from ₦32.00 to ₦57.00 per share
• Honeywell Flour Plc, which gained 233.3% to close at ₦21.00
• Northern Nigeria Flour Mills Plc, with a staggering 216.4% rise to ₦138.90
The Laggards: Oil & Gas and Insurance
While consumer stocks soared, other indices lagged:
• The NGX Oil & Gas Index slumped -14.19% YtD due to profit-taking in Oando Plc
• The NGX Insurance Index also slipped -4.63%
The Nestle Turnaround Story
Nestle Nigeria led the index with a massive reversal in fortune:
• From a ₦196.09 billion loss before tax in Q1 2024 to a ₦51.15 billion profit before tax in Q1 2025
• Driven by pricing power, robust demand, and operational optimization
Analysts say improved earnings, resilient consumer demand, and macroeconomic stabilization helped FMCG firms recover from the 2023-2024 economic turbulence, including the FX shock from the Central Bank’s 2023 policy shift.
Breweries Bounce Back
The entire breweries segment experienced a comeback:
• International Breweries Plc gained 74.8%, closing at ₦9.70
• Champion Breweries rose 78.5% to ₦6.80
• Guinness Nigeria saw a moderate 22.4% increase
Nigerian Breweries reported a dramatic turnaround:
• Q1 2025 profit before tax: ₦69.99 billion, from a ₦65.58 billion loss in Q1 2024
• Driven by process optimization, rightsizing, and FX liability reduction via proceeds from a 2024 rights issue
Analyst Commentary
Cordros Capital and Afrinvest both maintain BUY ratings for consumer stocks like Nestle and NASCON, citing:
• Strong market share
• Essential nature of products
• Ability to implement price hikes despite inflationary pressure
Afrinvest’s “Brewing Back to Profitability” report forecasts:
• A return to profitability in 2025 for the entire brewery sector, with PBT estimated at ₦215.3 billion
• Positive trends such as premiumisation, Gen-Z-focused innovation, and strategic M&A activity
️ Expert Insight
According to David Adnori, VP at Highcap Securities:
“The consumer goods rally is driven by aggressive investor positioning in blue-chip stocks like Nestle, NB, and Cadbury. Upcoming market-sensitive announcements in June could further influence direction.”
Summary at a Glance:
Index YtD Performance
NGX Consumer Goods Index +37.44% ✅
NGX All Share Index (ASI) +8.56%
NGX Oil & Gas Index -14.19% ❌
NGX Insurance Index -4.63% ❌
Outlook
Market watchers are cautiously optimistic, expecting the FMCG momentum to continue if Q2 results align with the current trajectory and external conditions remain favorable.
The Nigerian Exchange (NGX) Consumer Goods Index has emerged as the best-performing sectoral index in the first five months of 2025, with an impressive Year-to-Date (YtD) gain of 37.44% — far outpacing the NGX All Share Index (ASI), which closed the period with a modest 8.56% gain.
What’s Driving the Surge?
This outstanding performance was fueled by strong investor appetite for major players in the Fast-Moving Consumer Goods (FMCG) sector, most notably:
• Nestle Nigeria Plc, whose share price rocketed by 81.77% from ₦875 to ₦1,590.50, adding ₦567.14 billion in market value
• Nigerian Breweries Plc, up by 78.13%, from ₦32.00 to ₦57.00 per share
• Honeywell Flour Plc, which gained 233.3% to close at ₦21.00
• Northern Nigeria Flour Mills Plc, with a staggering 216.4% rise to ₦138.90
The Laggards: Oil & Gas and Insurance
While consumer stocks soared, other indices lagged:
• The NGX Oil & Gas Index slumped -14.19% YtD due to profit-taking in Oando Plc
• The NGX Insurance Index also slipped -4.63%
The Nestle Turnaround Story
Nestle Nigeria led the index with a massive reversal in fortune:
• From a ₦196.09 billion loss before tax in Q1 2024 to a ₦51.15 billion profit before tax in Q1 2025
• Driven by pricing power, robust demand, and operational optimization
Analysts say improved earnings, resilient consumer demand, and macroeconomic stabilization helped FMCG firms recover from the 2023-2024 economic turbulence, including the FX shock from the Central Bank’s 2023 policy shift.
Breweries Bounce Back
The entire breweries segment experienced a comeback:
• International Breweries Plc gained 74.8%, closing at ₦9.70
• Champion Breweries rose 78.5% to ₦6.80
• Guinness Nigeria saw a moderate 22.4% increase
Nigerian Breweries reported a dramatic turnaround:
• Q1 2025 profit before tax: ₦69.99 billion, from a ₦65.58 billion loss in Q1 2024
• Driven by process optimization, rightsizing, and FX liability reduction via proceeds from a 2024 rights issue
Analyst Commentary
Cordros Capital and Afrinvest both maintain BUY ratings for consumer stocks like Nestle and NASCON, citing:
• Strong market share
• Essential nature of products
• Ability to implement price hikes despite inflationary pressure
Afrinvest’s “Brewing Back to Profitability” report forecasts:
• A return to profitability in 2025 for the entire brewery sector, with PBT estimated at ₦215.3 billion
• Positive trends such as premiumisation, Gen-Z-focused innovation, and strategic M&A activity
️ Expert Insight
According to David Adnori, VP at Highcap Securities:
“The consumer goods rally is driven by aggressive investor positioning in blue-chip stocks like Nestle, NB, and Cadbury. Upcoming market-sensitive announcements in June could further influence direction.”
Summary at a Glance:
Index YtD Performance
NGX Consumer Goods Index +37.44% ✅
NGX All Share Index (ASI) +8.56%
NGX Oil & Gas Index -14.19% ❌
NGX Insurance Index -4.63% ❌
Outlook
Market watchers are cautiously optimistic, expecting the FMCG momentum to continue if Q2 results align with the current trajectory and external conditions remain favorable.