As we review the general performance of the year 2021, it is crucial that we also weigh the performance of our equities investment against the average inflation rate of the year to help gauge the worthiness of such investments.
The Nigerian Exchange Limited (NGX) closed the year on a positive note appreciating by 6.07% year to date, in comparison with the average inflation rate of 16.98% in 2021. If you invested in the 7 consumer goods stocks listed below, the effect of the inflation rate would have been eroded.
Interestingly, the list is dominated by millers, breweries and oil palm refinery companies in pairs, while livestock feeds stands alone. The top five (5) of the 7 stocks that attained this feat are listed below: Honeywell Flour Mills Plc
Honeywell Flour Mills Plc is a flour milling company that is principally engaged in the manufacturing and marketing of wheat-based food products, such as flour, semolina, whole wheat meal, noodles and pasta. The miller’s share price gained a total of 183.33% year to date and outperformed the average inflation rate by 166.35%.
During the year, industry-peer Flourmills Plc announced the acquisition of 71.69% stake in Honeywell Flour Mills Plc for N80 billion, which was a major catalyst for the rallying witnessed in the shares of Honeywell Plc. The announcement triggered a jump in the price of the company’s shares making it the best-performing consumer goods company in 202.
In the 6 months ended September 30 2021, its financial statement revealed a 73.04% growth in profit after tax from N204 million to N353 million and a 19.32% growth in revenue.
Honeywell Flour Mills Plc is trading around N3.37 at the time of writing this report. Champion Breweries Plc
Champion Breweries is the 4th largest brewery on the Exchange by market capitalization.
Champion Breweries Plc is an established brewery in Nigeria manufacturing Champion Lager Beer and Champ Malta as well as a selection of non-alcoholic beverages. The company also brews and packages products under contract for Nigerian Breweries Plc.
The company’s share price gained a total of 173.26% at the end of 2021, outperforming the average inflation rate by 156.28%.
The brewery recorded revenue growth of 44.72% in the 9-months ended September 2021, from N4.89 billion in the corresponding period of 2020 to N7.08 billion. Net profit for the period appreciated significantly by 969.45%, the highest amongst all four breweries in the same period. This impressive performance could be […]