Sector Comeback of the Year: Consumer Goods Index Leads NGX with 32.4% Surge in 2025
The Consumer Goods Index has emerged as the best-performing sector on the Nigerian Exchange (NGX) so far in 2025, boasting a remarkable 32.4% year-to-date (YTD) gain. This resurgence reflects a strong sector-wide recovery, as companies bounce back from previous years of forex-induced losses, renewing investor confidence and driving major re-ratings.
This is a striking turnaround for a sector that, just a few years ago, was one of the worst-hit by Nigeria’s foreign exchange (FX) crisis. In May 2022, the Consumer Goods Index returned a modest 12% and lagged behind major indices. Today, it leads the pack, outperforming even the All-Share Index (5.9% YTD), while other indices like Industrial (-3.89%), Oil & Gas (-12.4%), Insurance (-5.6%), and ASeM (+0.6%) trail behind.
What’s Fueling the Comeback?
Sectoral growth has been driven by:
• Macroeconomic stabilization
• Improved FX liquidity due to CBN interventions
• Strong consumer demand
• Operational resilience from key firms
These tailwinds have helped once-struggling companies return to profitability, some for the first time since 2023. Cadbury Nigeria, for example, swung from a pre-tax loss of ₦17.3 billion in 2023 to a Q4 2024 profit of ₦2 billion, with revenue up 87.3%. Similarly, BUA Foods led the charge, reporting:
• Q4 2024 revenue: ₦437.4 billion (up 114.4%)
• Q4 pre-tax profit: ₦73.4 billion (up 288.04%)
• Full-year profit: ₦289 billion (up 167%), even after absorbing ₦188 billion in FX losses
Honeywell Flour Mills also recorded a massive 201% YTD gain, rewarding shareholders handsomely and reaffirming the sector’s growth trajectory.
What Experts Are Saying:
According to Dr. Paul Uzum, Executive Director of Halo Nigeria Capital Management, this rally aligns with predictions made earlier in the year. The end of recurring FX losses and the rising cost of goods have positioned consumer goods companies for strong earnings growth.
Patrick Ajudua, President of the New Dimension Shareholders Association, also pointed to improved FX stability, earnings rebound, and the resumption of dividend payments as key reasons for renewed investor interest.
Why This Matters:
The dramatic re-rating of consumer goods stocks is not just a market story—it’s a sign that investors are regaining trust in a once-shaky sector. The ability of companies to thrive despite past headwinds is reshaping market sentiment and attracting both retail and institutional buyers back into the space.
As macroeconomic reforms take root and FX volatility subsides, analysts believe the sector may remain a top pick for 2025, especially for investors seeking both capital appreciation and dividend income.
The Consumer Goods Index has emerged as the best-performing sector on the Nigerian Exchange (NGX) so far in 2025, boasting a remarkable 32.4% year-to-date (YTD) gain. This resurgence reflects a strong sector-wide recovery, as companies bounce back from previous years of forex-induced losses, renewing investor confidence and driving major re-ratings.
This is a striking turnaround for a sector that, just a few years ago, was one of the worst-hit by Nigeria’s foreign exchange (FX) crisis. In May 2022, the Consumer Goods Index returned a modest 12% and lagged behind major indices. Today, it leads the pack, outperforming even the All-Share Index (5.9% YTD), while other indices like Industrial (-3.89%), Oil & Gas (-12.4%), Insurance (-5.6%), and ASeM (+0.6%) trail behind.
What’s Fueling the Comeback?
Sectoral growth has been driven by:
• Macroeconomic stabilization
• Improved FX liquidity due to CBN interventions
• Strong consumer demand
• Operational resilience from key firms
These tailwinds have helped once-struggling companies return to profitability, some for the first time since 2023. Cadbury Nigeria, for example, swung from a pre-tax loss of ₦17.3 billion in 2023 to a Q4 2024 profit of ₦2 billion, with revenue up 87.3%. Similarly, BUA Foods led the charge, reporting:
• Q4 2024 revenue: ₦437.4 billion (up 114.4%)
• Q4 pre-tax profit: ₦73.4 billion (up 288.04%)
• Full-year profit: ₦289 billion (up 167%), even after absorbing ₦188 billion in FX losses
Honeywell Flour Mills also recorded a massive 201% YTD gain, rewarding shareholders handsomely and reaffirming the sector’s growth trajectory.
What Experts Are Saying:
According to Dr. Paul Uzum, Executive Director of Halo Nigeria Capital Management, this rally aligns with predictions made earlier in the year. The end of recurring FX losses and the rising cost of goods have positioned consumer goods companies for strong earnings growth.
Patrick Ajudua, President of the New Dimension Shareholders Association, also pointed to improved FX stability, earnings rebound, and the resumption of dividend payments as key reasons for renewed investor interest.
Why This Matters:
The dramatic re-rating of consumer goods stocks is not just a market story—it’s a sign that investors are regaining trust in a once-shaky sector. The ability of companies to thrive despite past headwinds is reshaping market sentiment and attracting both retail and institutional buyers back into the space.
As macroeconomic reforms take root and FX volatility subsides, analysts believe the sector may remain a top pick for 2025, especially for investors seeking both capital appreciation and dividend income.