BUA Foods has published its unaudited report for 9 months ended 30th September 2021. According to the report, total turnover rose 6.8 per cent year on year to ₦79.7 billion in the period on the back of a 152.6 per cent surge in sales of Non-fortified sugar with a 72.2 per cent turnover. Nonetheless, gross margin logged at 28.4 per cent in the 9 months of 2021 from 28.6 per cent in the same period of 2020, due to the faster pace of growth in cost of sales (+7.2% to ₦57.1bn) than revenue. Further down, EBIT stood at ₦22.4 billion (+18.1% y/y) with expansion in margin to 28.1 per cent from 25.4 per cent. Also, BUA Foods reported a 69.6 per cent growth in finance cost (₦5.8bn) while profit after tax grew 6.7 per cent year on year to ₦16.6 billion.
Meanwhile the stock market recouped losses at the start of the week as the NGX ASI gained 0.6% to close at 44,655.89 points, buoyed by gains in BUACEMENT (+2.0%), GTCO (+1.4%), and ACCESS (+2.1%). As a result, YTD return improved to 4.5% while market capitalisation increased ₦138.1bn to ₦24.1tn. Volume traded rose 9.8% to 235.2m units while value traded fell 28.7% to ₦1.9bn. TRANSCORP (38.1m units), GTCO (18.7m units), and JAIZBANK (15.0m units) led by volume while GTCO (₦476.5m), FBNH (₦161.1m), and NIGERIAN BREWERIES (₦146.2m) led by value.
Across sectors within our coverage, performance was uneven as 3 indices advanced, 2 lost while the AFR-ICT index closed flat. The Banking index led the gainers, up 1.0%, due to upswing in prices of GTCO (+1.4%) and ACCESS (+2.1%). Trailing, the Consumer Goods and Oil & Gas indices rose 0.7% and 0.3% respectively on account of gains in BUAFOODS (+4.2%), DANGSUGAR (+7.4%), ETERNA (+5.8%) and CONOIL (+3.1%). Conversely, the Insurance and Industrial Goods indices dipped 1.6% and 2bps respectively on price decline in NEM (-8.3%), WAPIC (-3.9%) and WAPCO (-0.4%).
Investor sentiment, as measured by market breadth (advance/decline ratio), strengthened to 2.0x from 0.7x as 26 stocks gained against 13 laggards. COURTVILLE (+8.6%), FTNCOCOA (+8.3%), and DANGSUGAR (+7.4%) led gainers while NEM (-8.3%), SUNUASSURE (-5.9%), and REGALINS (-4.3%) led decliners. We anticipate the mild buying pressure to persist in tomorrow’s trading session.
Market Statistics for Tuesday, 18th January 2022
|Market Cap (N’bn)||24,059.8|
|Market Cap (US$’bn)||58.5|
|NGX All-Share Index||44,655.89|
|Daily Performance %||0.6|
|WTD Performance %||0.5|
|MTD Performance %||4.5|
|QTD Performance %||4.5|
|YTD Performance %||4.5|
|Daily Volume (Million)||235.2|
|Daily Value (N’bn)||1.9|
|Daily Value (US$’m)||4.7|