cp Business day
Nigeria’s fast-moving consumer goods (FMCG) sector has recorded a sharp rebound in earnings per share (EPS), boosting the equities market, driving share-price appreciation, and renewing investor confidence in the consumer segment.
EPS, a key indicator of a company’s profitability per share, has become critical for investors assessing the strength of listed firms amid Nigeria’s improving macroeconomic environment.
Sector-Wide Turnarounds
Recent financial results highlight dramatic recoveries:
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Cadbury Nigeria Plc swung from a negative EPS of 426 kobo in H1 2024 to a positive 446 kobo in H1 2025.
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Champion Breweries Plc moved from a loss of N4.94 kobo to a profit of N25.57 kobo.
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International Breweries Plc returned to profitability with EPS rising from N3.98 loss to N0.25 gain.
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Nestlé Nigeria Plc improved from a loss of N223.19 per share to a positive EPS of N63.80.
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Nigerian Breweries Plc rebounded from an 828 kobo loss to a positive 285 kobo per share.
Collectively, the sector recorded a turnaround of N211 billion in H1 2025, reversing a N376 billion loss from the same period in 2024.
Drivers of the EPS Recovery
Analysts attribute the rebound to several factors:
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Stability in the naira and conversion of foreign loans to local currency.
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Revenue recovery and improved cost management.
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Reduced import dependence through local sourcing and government manufacturing reforms.
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Moderating inflation, with August 2025 headline inflation easing to 20.12%, down from 21.88% in July.
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Operational efficiencies, including streamlined production and better cash management.
Impact on the Equities Market
The EPS rebound has translated into stronger market valuations and buying interest:
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Cadbury Nigeria shares surged 200%, from N23 to N69.
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Champion Breweries Plc rose 325%, from N3.95 to N16.8.
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International Breweries Plc gained 154.4%, while Nestlé Nigeria Plc and Nigerian Breweries Plc increased by 91.7% and 117.4%, respectively.
Bolade Agboola, consumer goods analyst at ChapelHill Denham, noted:“Rising EPS gives investors confidence that a company’s fundamentals are solid, influencing share valuations and dividend expectations, which drive stock demand.”
Olufunmilola Adebowale, head of research at Parthian Partners, added that while the extraordinary EPS growth partly reflects base effects, the sector’s fundamentals are stronger, supported by currency stability, improved consumer demand, and moderated inflation.
Outlook
With the NGX Consumer Goods Index rising 120.62% year-to-date, analysts expect that the sector’s improved earnings, cost efficiencies, and operational adjustments will continue to support investor confidence, although EPS growth may moderate in future periods.
