Rising inflation, shortage of foreign exchange and overall harsh operating environment have continued to assail the operations of the Consumer Goods sub-sector just as the bottom-line of the sector’s listed equities, in last few months remained subdued, with gloomy outlook.
The industry is also grappling with rising production costs mainly due to inadequate and in some instances, non-existent power supply. Spiralling diesel costs, coupled with the low level of power supply, are putting a financial burden on the sector. The company witnessed sell-pressure, which drove market capitalisation by N82.72 billion to close at N392.137 billion at the close of trading on July 31, 2022, from the opening figure of N474.858 billion at the beginning of trading on July 1, 2022.
For International Breweries Plc, its shares shed 15.07 per cent in price during the month, from N6.30 to N5.35 per share. The drop in the company’s share price drove down the market capitalisation by N25.519 billion to close at N143.712 billion at the close of trading in July from an opening figure of N169.231 billion at the beginning of trading on July 1st.
Cadbury Nigeria Plc’s share price was also affected by the market downturn dropping by 10.72 per cent during the period under review, from N17.25 per share to N15.40 per share, dragging the market capitalisation by N3.474 billion or 10.72 per cent to close at N28.924 billion at the end of July 2022 from the opening figure of N32.398 billion.The company’s recently released financial highlights for the first half of 2022 , showed that its turnover rose to N27.