Rising EPS signals renewed investor confidence in FMCG firms
The sharp rebound in earnings per share (EPS) across Nigeria’s fast-moving consumer goods (FMCG) companies is boosting the equities market, driving share-price appreciation, and renewing investor optimism in the consumer segment.
The rise in EPS, a key measure of how much profit a company earns per share, has become a critical indicator for investors assessing the strength and value of listed firms amid Nigeria’s fragile but improving macroeconomic environment.
Recent financial results show that FMCG giants such as Cadbury Nigeria swung from a negative earnings per share of N426 in the first half of 2024 to a positive N446 in the corresponding period of 2025, a turnaround driven by revenue recovery and better cost discipline. Champion Breweries Plc also recorded a similar pattern, moving from a negative EPS of N4.94 in H1 2024 to a positive N25.57 in H1 2025.
International Breweries Plc, which had struggled with heavy finance costs and currency losses in the previous year, returned to profitability as its EPS rose from a N3.98 loss per share to a positive N9.25 in the same period. Nestlé Nigeria Plc, one of the country’s most capitalised consumer goods firms, reported a turnaround, improving from a loss of N223.19 per share in 2024 to a positive EPS of N63.80 in 2025.
Similarly, Nigerian Breweries Plc, the sector’s largest player, rebounded strongly from an N828 loss per share in H1’24 to post a positive N285 per share in H1 2025, reflecting efficiency gains and the recovery of beer consumption after a challenging year.
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These results mark a sector-wide earnings revival and confirm that profitability has not only returned but is strengthening across the board. Analysts say the improvement signals renewed investor confidence in the FMCG space, with the rebound in EPS translating into stronger market valuations and renewed buying interest in consumer stocks.
Bolade Agboola, consumer goods analyst at ChapelHill Denham, said the cause of the negative earnings was largely the devaluation of the naira, which ballooned their finance costs and weighed negatively on earnings.
“The turnaround in EPS across the FMCG sector is a strong indicator that the consumer segment is stabilising,” said Agboola. “We expect a stable naira, and so this is positive for FMCGs and supportive to their earnings, as investors are beginning to see value again in companies like Cadbury, Nestlé, and Nigerian Breweries that had previously been weighed down by rising costs and currency headwinds.”
For Olufunmilola Adebowale, head of research at Parthian Partners, the EPS rebound signals stronger fundamentals in the FMCG sector, it shows that most of these companies have recovered from last year’s shock. including exchange rate stability, moderating inflation, and improved consumer demand, all of which are contributing to better earnings.
“What we are seeing now is partly because of base effects. These companies are coming from a negative position to a positive one, so the growth appears very sharp. Going forward, the growth rate will likely moderate. It’s still a good sign for investors, but the extraordinary jumps we saw this year won’t likely repeat themselves next year,” she said.
Economic conditions empowering EPS growth
Many FMCG firms have been able to turn things around because they converted their foreign loans to naira loans and paid down part of their exposures. With the naira now relatively stable compared to what it was last year, some of those exchange losses have turned into gains.
Data from the Central Bank of Nigeria (CBN) showed that after trading, the naira closed at N1,466.65 per dollar on Thursday, October 9, representing a 0.78 percent depreciation from the N1,478.22 quoted on January 31 at the Nigerian Foreign Exchange Market (NFEM).
At the monetary policy committee (MPC) meeting held on September 2025, the Central Bank cautiously reduced its benchmark interest rate, the Monetary Policy Rate (MPR), by 50 basis points to 27 percent from 27.50 percent. The move was aimed at boosting growth while sustaining the interest of foreign portfolio investors in the country.
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Easing foreign exchange restrictions, increasing local sourcing of raw materials, and government reforms in manufacturing and energy have helped FMCG firms reduce import dependence and cushion the impact of naira volatility.
The stability has supported earnings growth. According to the National Bureau of Statistics (NBS), Nigeria’s headline moderated to 20.12 percent year-on-year in August, down from 21.88 percent recorded in July.
Analysts at FBNQuest said the easing in August’s inflation reading was driven by softer energy prices and ongoing stability in the FX market.
Companies like Champion Breweries and Nestlé have expanded local manufacturing and streamlined operations, cutting costs and boosting margins. These structural adjustments have helped translate revenue growth into higher EPS, reinforcing investor confidence in the sector.
Recent financial results show FMCG giants such as Cadbury Nigeria, Champion Breweries Plc, International Breweries Plc, Nestlé Nigeria Plc, and Nigerian Breweries collectively reported a turnaround of N211 billion in the first half, from a negative N376 billion in the same period of 2024.
In the first six months (H1) of 2025, Champion Breweries saw its profit rise 692 percent to N2.3 billion, rebounding from a N386 million loss it recorded in the same period last year. Similarly, Nigerian Breweries posted a net profit of N88.4 billion in the first half of 2025, reversing an N85.2 billion loss a year earlier.
The NGX Consumer Goods Index on October 9th rose by 120.62 percent year-to-date, according to market data, making it one of the best-performing segments on the Nigerian Exchange, with leading FMCG stocks delivering double-digit price gains.
How rising EPS impacts the equity market
The improvement in EPS has become a key driver of equity market performance, particularly for consumer goods stocks. Higher EPS signals stronger profitability and often precedes share price appreciation, as investors reward firms capable of generating consistent returns per share.
“Rising EPS gives investors confidence that a company’s fundamentals are solid, especially in volatile economies like Nigeria’s,” said Agboola, a consumer analyst. “It not only influences share valuations but also underpins dividend expectations, both of which drive stock demand.”
She added that “We have seen prices rebound, and so that has been positive in terms of market capitalisation and also capital appreciation for investors.”
As of October 10, Cadbury Nigeria’s share price surged by 200 percent, rising from N23 to N69, while Champion Breweries Plc recorded the highest growth of 325 percent, climbing from N3.95 to N16.8. International Breweries Plc followed with 154.4 percent, while Nestlé Nigeria Plc and Nigerian Breweries Plc gained 91.7 percent and 117.4 percent, reflecting strong investor confidence and improved earnings performance across the FMCG sector.
