Shares of Livestock Feeds Plc have risen over 50% month-to-date, marking three consecutive weeks of gains amid a surge in market volume in early and mid-January.
This follows the company’s strong earnings report on October 28th, showing a 99% year-over-year revenue increase to N28.6 billion from N14.3 billion the previous year.
Key markets like Lagos and Aba drove revenue growth, contributing 46% and 36% respectively, while income from core operations spiked by 789% year-over-year.
Pre-tax profits for the same period also saw a significant rise, reaching N2.1 billion, up from N58.6 million the prior year.
After the earnings report on October 28, the stock faced a dip through November before picking up again in mid-December.
This renewed interest from investors, which has carried over into early to mid-January, has resulted in a market volume of 94 million so far, likely contributing to the recent increase in share price.
Market trend
Livestock Feeds saw an impressive year-to-date performance of 122.70% in 2024, fueled by strong bullish momentum.
- The stock opened at N1.85 in January 2024 but remained stagnant during most of the first and second quarters.
- A shift occurred in June, leading to a noticeable price increase. By October, shares climbed past N3.50, closing at N3.87 with a significant market volume of 90.8 million shares.
- November introduced a dip, but the stock rebounded in December, wrapping up the year just above N4 at N4.12.
As January 2025 progresses, momentum continues to build, with a monthly market volume of 94 million and trading surpassing N6 as of January 21, 2025.
Likely drivers of bullish price action
Livestock Feeds reported a 99% increase in revenue for the nine-month period ending September 30, 2024, reaching N28.6 billion, up from N14.3 billion in the same period last year.
- This substantial growth propelled operational profits and pre-tax profits to impressive levels, rising by 789% and 3,503% year-on-year, respectively, with pre-tax profits amounting to N2.1 billion.
- Additionally, the company’s ‘other income’ climbed by 21% to N58.9 million, with sales of sacks contributing over 85% of this total.
The surge in share prices observed in early and mid-January can likely be attributed to significant trading volume from investors who view the stock as undervalued, with strong potential for profitability in 2025.
Livestock Feeds Plc specializes in the manufacture and sale of animal feeds and concentrates across Nigeria.
- Established in 1963 as a subsidiary of Pfizer, it is headquartered in Lagos, Nigeria.
