reports
- ARM Research
- Callista Chileke
BUAFOODS' Q3/9M:2025 Earnings Note | Strong Volume Growth Drives Margi...
BUAFOODS reported robust 9M:2025 results, with revenue up 32.7% YoY to NGN1.42trn and PAT rising 101.24% YoY to NGN405.27bn, supported by strong volume growth across sugar, rice, flour, and pasta segments. In Q3:2025, margins softened slightly due to higher expenses, but profit remained strong, increasing 99.93% YoY and 11.91% QoQ to NGN147.37bn. We assign a HOLD rating and revise our 12-month target price to NGN735.22, representing a 6.17% upside from the current price of NGN692.50 (November 1...
- ARM Research
- Callista Chileke
Nestlé Q3/9M:2025 Earnings Note | A Slow but Steady March Back to Posi...
NESTLE posted a notable earnings rebound in 9M:2025, supported by lower finance costs and a reversal from FX losses. Consequently, it recorded its first quarterly profit of NGN21.91bn, after four consecutive quarters of losses, bringing its 9M:2025 Profit-After-Tax (PAT) to NGN72.48bn. Finance costs declined sharply by 85.05% YoY in 9M:2025 to NGN55.17bn, reflecting a 20.29% YtD reduction in total debt and a NGN20.75bn FX gain. Consequently, the company’s interest coverage ratio improved to 3.2...
- ARM Research
- Callista Chileke
International Breweries' Q3/9M:2025 Earnings Results | Turning the Cor...
International Breweries Plc (INTBREW) delivered a strong turnaround in 9M:2025, marking its first nine-month profit since 2018. The brewer reported a NGN57.83bn Profit-After-Tax (PAT) (vs. NGN112.81bn loss in 9M:2024), supported by 37.6% YoY revenue growth to NGN472.57bn and sustained pricing and volume recovery. Profitability metrics strengthened notably, with EBITDA margin expanding by 840bps YoY to 18.34% (though down 934bps QoQ due to seasonal effects). The improvement reflects pricing effi...
- Ameerat Adamu
- ARM Research
Lafarge Africa Plc. 9M:2025 Earnings Note | Driving Profits Through En...
Lafarge Africa Plc (WAPCO) delivered a solid 9M:2025 performance, supported by volume growth, pricing strength, and energy efficiency gains. Revenue rose 62.77% YoY to NGN780.49bn, while gross margin expanded to 58.44%. Profit before tax and profit after tax grew 232.14% and 245.86% YoY to NGN313.29bn and NGN207.78bn, respectively, with EPS at NGN12.90. ROE and ROA stood at 44.02% and 26.99%, reflecting strong capital efficiency. We retain our target price of NGN192.86 and a STRONG BUY rating, ...
- ARM Research
- Lutfullahi Aderibigbe
PRESCO Plc 9M/Q3:2025 Earnings Note | Solid 9M Performance Despite Sea...
Key Takeaways Revenue Softens on Seasonal Lull: Revenue declined 27.8% QoQ to NGN75.76bn due to the lean season, though YoY growth remained strong at +113.51%, supported by firm CPO prices and higher output capacity. Cost Pressures Intensify Sequentially: Cost of sales grew 100.7% YoY to NGN72.4bn and 163.0% QoQ to NGN46.02bn, reflecting replanting expenses, higher logistics costs, and the full consolidation of GOPDC operations. The frontloaded production strategy geared toward meeting ...
- ARM Research
- Callista Chileke
Off-Season Impacts Nigerian Breweries’ Q3:2025 Earnings Results
Key Takeaways Seasonal Slowdown Impacts Topline: NB’s Q3:2025 revenue declined 13.05% QoQ to NGN308.24bn, reflecting the typical Q3 moderation in beer consumption. However, YoY revenue rose 33.38%, driven by higher prices and an improved product mix. Negative EPS in Q3:2025: NB posted a loss of NGN2.91bn in Q3:2025, translating to a negative EPS of NGN0.13, compared to a profit of NGN42.81bn (EPS: NGN1.38) in Q2:2025. Nevertheless, 9M:2025 performance remained strong, with profit up 157.20% Yo...
- ARM Research
UBA H1:2025 Earnings | Interest Income and Lower Impairments Support B...
UBA delivered resilient earnings in H1:2025, with gross earnings up 17.28% YoY to NGN1.61trn, largely supported by a strong 32.89% YoY growth in interest income on loans and investment securities. However, higher interest expense (+70.43% YoY) and weaker non-interest income (-25.35% YoY) pressured overall performance. Despite cost discipline, Cost to Income ratio rose to 55.32%. PAT grew 6.06% YoY to NGN335.53bn, helped by lower impairment charges (-39.97% YoY). Balance sheet strength was evid...
- ARM Research
ZENITHBANK H1:2025 Earnings Note | Profit Dips Amid Soaring Impairment...
Zenith Bank reported a 7.9% YoY drop in Profit After Tax (PAT) to NGN532.18bn, weighed by an 83.2% surge in impairment charges to NGN760.81bn following the CBN’s mandate on forbearance exposures. Gross earnings rose 19.96% YoY to NGN2.52trn, supported by a strong 60.01% YoY growth in interest income to NGN1.84trn, largely from Treasury bills, placements, and customer loans. This drove Net Interest Income up 89.45% YoY to NGN1.35trn. However, Non-Interest Income declined 28.41% YoY to NGN681.51b...
- ARM Research
PZ Cussons Returns to Profitability in Q1:2025/2026, Driven by Disposa...
PZ Cussons Nigeria Plc (PZ) recorded a solid turnaround in Q1:2026 (ended August 31, 2025). Revenue grew 47.6% YoY to NGN59.01bn, driven by higher volumes and pricing adjustments. Cost of sales rose 55.31% YoY due to FX weakness and higher input costs, but tighter expense control (OPEX down 60.88% YoY) and reduced finance costs strengthened profitability. The company swung to a pre-tax profit of NGN21.5bn from a NGN5.2bn loss in Q1:2025, supported by a NGN3.6bn FX gain and NGN12.2bn other income...
- ARM Research
September 2025 Inflation Report | Harvest Relief Meets Disinflation D...
Nigeria’s headline inflation eased for the sixth straight month to 18.02% YoY in September 2025 (from 20.12% in August), the lowest since May 2022. The decline was driven by CPI rebasing, seasonal harvest gains, and lower food prices which fell to 16.78% YoY. Of note was the slight 2bp decline in headline inflation to 0.72% MoM, despite a sharp 1.57% MoM drop in food prices, which placed food inflation in the deflationary region. This moderate decline in MoM headline inflation points towards the...
- Lutfullahi Aderibigbe
Unilever Nigeria Plc H1:2025 Earnings Note | Stirring Growth, Spreadin...
Unilever Nigeria posted an exceptional H1:2025, with revenue rising 53.50% YoY to NGN98.10bn, driven by broad-based growth across all segments. Despite inflationary pressures, gross profit grew 60.63% YoY, while disciplined cost management and strong finance income helped operating profit surge 444.25% YoY to NGN18.81bn. PAT rose 224.64% YoY to NGN14.41bn, supported by margin expansion and improved cost absorption.
- Lutfullahi Aderibigbe
PRESCO PLC | Harvesting Gains from Strategic Expansion
Presco Plc delivered a strong H1:2025, with revenue up 125.8% YoY to NGN198.7bn, driven by its GOPDC acquisition in Ghana and higher domestic CPO prices. Operating profit rose 138.3% YoY to NGN129.8bn, supported by strong margins and disciplined cost management. Despite its solid performance, Presco trades at a P/E of 11.91x vs. 13.40x industry average, highlighting valuation upside.
- Callista Chileke
Dangote Sugar Refinery Plc. H1:2025 Earnings Note | Losses Narrow, but...
In H1:2025, DANGSUGAR delivered a significant improvement, narrowing its loss-after-tax by almost 90% compared to H1:2024. This progress was driven by a strong 45.53% year-on-year (YoY) revenue growth, supported by robust sales across key product segments and improved cost management amid a more stable exchange rate environment. Although finance costs continue to pose a significant challenge, their decline driven by lower foreign exchange losses, along with the company’s improved topline and op...
- Callista Chileke
Guinness Nigeria Plc 12M:2025 Earnings Note | Sustained Earnings Momen...
Guinness Nigeria is back in the spotlight with strong 12M:2025 results showing a 65.82% revenue jump and a turnaround to a NGN16.2bn net profit. Valuation-wise, Guinness trades at a P/E multiple of 15.82x, well below the sector average of 38.40x, suggesting that the market has yet to fully price in the company’s improving fundamentals. Based on our projections, the stock is positioned for a 43.56% increase over the next 12 months, driving our recommendation to STRONG BUY at the current price of...
- ARM Research
MPC Delivers Another Rate Hold in July 2025 Meeting | July 2025 Post M...
At the July 2025 Monetary Policy Committee (MPC) meeting, the Committee maintained the Monetary Policy Rate (MPR) at 27.50% for the third consecutive time, keeping all other monetary parameters unchanged. This decision reflects the Committee’s focus on sustaining recent disinflation momentum and reinforcing exchange rate stability. However, while the Committee appreciated the relative FX stability, it was cautious about the uptrend in Month-on-Month (MoM) inflation.
- ARM Research
June 2025 Inflation Report | High Base Effect Keeps YoY Inflation Tape...
June 2025 offered another month of relief as headline inflation eased to 22.22% YoY (from 22.97% in May 2025), aided by a stronger Naira (NGN1,546.50/USD) and high base effect. However, food inflation rose sharply to 3.25% MoM, driven by flooding in Niger, insecurity in Benue, and a rebound in imported food costs. While core inflation also picked up to 2.46% MoM (from 1.10% MoM in May 2025), we expect some reprieve in July from softer global oil prices and lower fuel costs (NGN820/litre). Nonet...
- ARM Research
Charge Through the Trough | H2:2025 Nigeria Strategy Report
From President Trump's Washington to Beijing, and then Tehran, the first half of 2025 delivered a steady stream of shocks that clouded the global economic outlook. The drama of tariffs, escalating Middle East conflict, and a more relaxed stance by major central banks weighed heavily on investor sentiment. But one thing was for sure: amid these disruptions, Nigeria's macroeconomic landscape quietly found its balance. Inflation eased, the Naira regained some composure, and the central bank's paus...
- Ameerat Adamu
- ARM Research
Nigeria's 2025 Cement Sector Report | Betting on Cement
Despite global production cooling off in 2024, Nigeria’s cement sector remains firmly on a growth path. Our latest report explores how the country’s position as Sub-Saharan Africa’s largest producer is being reinforced by urbanization, infrastructure-led demand, and strategic self-sufficiency gains even in the face of FX pressure, inflation, and rising input costs. We dive into the opportunities created by government led projects, the rise of concrete roads, and how key players like Dangote, BU...
- ARM Research
How Long Will Investors Wait for Banking Dividends?
On June 13th, 2025, the Central Bank of Nigeria (CBN) released a circular titled “Temporary Suspension of Bank Dividends and Bonus Circular”. Key highlights from the circular include: • No Dividends: Banks under forbearance cannot pay dividends to shareholders, meaning profits must be retained to bolster their financial reserves. • No Executive Bonuses: Banks are barred from issuing bonuses to executives, ensuring funds are not diverted to personal compensation. • No New Offshore Invest...
- ARM Research
Inflation Report | FX Stability Eases Inflation, Food Prices Rise
In May 2025, headline inflation sustained its downward trend, decreasing by 74 basis points (bps) to 22.97% Year-on-Year (YoY) from 23.71% in April 2025. This decline was propelled by a 12bps reduction in food inflation to 21.14% YoY from 21.26% YoY and a 110bps drop in core inflation to 22.28% YoY from 23.39% YoY in April 2025. On a Month-on-Month (MoM) basis, headline inflation declined to 1.53% in May 2025, down from 1.86% in April 2025, following a decline in core inflation to 1.10%...
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