Top 10 Nigerian Companies to Invest | (Q1) 2024 | Investors Guide

Looking to invest in Nigerian companies? In this article, we will reveal the top 10 Nigerian companies that you should consider investing in for the first quarter of 2024. The Giant of Africa boasts a thriving economy and a vibrant business environment.

From various industries including banking, telecommunications, and consumer goods, these companies have proven their worth and stability. With their strong performance records, established market presence, and promising growth prospects, they offer a solid investment option for both local and international investors alike. 

By carefully analyzing their financials, market trends, and growth strategies, we have curated a list of the top 10 Nigerian companies that are poised to outperform others in the first quarter of 2024.

In this article, we will highlight:

• The top 10 Nigerian companies to invest in Q1 2024
• Past achievements of each company
• Fundamental analysis of each company
• Reasons to Invest in each company in Q1 2024

1. Unilever Nigeria Plc [UNILEVER]

Unilever Nigeria is a subsidiary of Unilever, a multinational consumer goods company. Established in Nigeria in 1923, it manufactures and distributes a wide range of consumer products, including foods, beverages, cleaning agents, and personal care products.

Ownership

Unilever Nigeria Plc is a subsidiary of Unilever Overseas Holding B.V., a multinational corporation with a global presence in the consumer goods market.

Management

This company is led by a team of experienced executives across various industries, with oversight from a board of directors.

Past Achievements

Unilever Nigeria Plc has a rich history dating back to 1923 when it was established as Lever Brothers (West Africa) Ltd. Over the years, the company has evolved and expanded its product offerings, becoming a major player in the Nigerian consumer goods market. It has successfully introduced popular brands such as Omo detergent, Royco, Blue Band, and Lipton Yellow Label Tea to Nigerian consumers.

Fundamental Analysis

With the last annual report published by the company in mid-2023, Unilever Nigeria Plc has shown consistent revenue growth. It reported a revenue of 90.77 billion naira in 2017, 70.52 billion in 2021, and 88.57 in 2022. The company’s operating income was 7.54 billion naira, indicating strong operational efficiency.

Additionally, it reported a net income of 4.46 billion naira, reflecting profitability. These fundamental factors suggest stability and growth potential for investors considering Unilever Nigeria Plc in Q1 2024.

Reasons to Invest in Q1 2024

Unilever Nigeria Plc continues to show resilience despite the changing market dynamics. With its established brand presence, diversified product portfolio, and strategic investments in local production, the company is well-positioned to capitalize on Nigeria’s growing consumer market. Moreover, its strong financial performance and commitment to innovation make it an attractive investment opportunity in Nigeria in Q1 2024.

Technical Analyst view on Unilever  Nigeria  Plc

2. Learn Africa Plc [LEARNAFRCA]

Learn Africa Plc focuses primarily on publishing and promoting textbooks for all levels of education, from nursery to tertiary. Being one of the top Nigerian companies to invest, Learn Africa Plc started back in 1961 as Longman Nigeria, a book publishing company owned by Longman Group UK Limited, which is now called Pearson Education. In 1996, on July 23rd, the company’s shares were officially listed on the Nigerian Stock Exchange.

Ownership

Learn Africa Plc is owned by a group of shareholders.

Management

Managed by a team of education and publishing industry experts, with oversight from a board of directors.

Past Achievements

Learn Africa has a long-standing reputation for producing high-quality educational materials and has contributed significantly to the development of Nigeria’s education sector. Today, it has the broadest selection of educational resources and operates an extensive distribution network throughout Nigeria.

Fundamental Analysis

Learn Africa Plc has demonstrated steady revenue growth over the periods ending in Q3 2023, with revenues increasing from 1.51 billion naira in Q3 2022 to 1.88 billion naira in Q3 2023. The company’s gross profit also showed improvement, rising from 894.82 million naira to 1.70 billion naira during the same period.

However, it’s noteworthy that there was a decrease in operating profit from 1.12 billion naira to 733.71 million naira, indicating increased operating expenses. Despite this, Learn Africa Plc managed to maintain profitability, with profit before tax amounting to 698.13 million naira in Q3 2023, compared to 839.89 million naira in Q3 2022.

Reasons to Invest in Q1 2024

Despite the challenges reflected in the slight decrease in operating profit, Learn Africa Plc remains a compelling investment option for Nigerians in Q1 2024. The company has a strong track record of revenue growth and profitability, indicating resilience in its operations.

Additionally, Learn Africa Plc operates in the education sector, which is essential and tends to be less cyclical compared to other industries. With the increasing demand for quality education and learning materials in Nigeria, Learn Africa Plc is well-positioned to capitalize on market opportunities and deliver sustainable returns to Nigerian investors in Q1 2024.

3. UAC of Nigeria Plc [UPL]

Established in 1879, UAC of Nigeria Plc has evolved from its origins as a trading company to become a prominent holding company with diverse business interests. The company owns and operates businesses with manufacturing facilities spread across Nigeria, contributing significantly to the country’s economic development.

Ownership

UAC of Nigeria Plc operates as a publicly listed company, with ownership distributed among various shareholders who hold stakes in the company.

Management

Under the leadership of its Group Managing Director, Fola Aiyesimoju, UAC of Nigeria Plc is guided by a seasoned management team with extensive experience in business management and strategic decision-making.

Past Achievements

Throughout its rich history, UAC of Nigeria Plc has achieved numerous milestones, including the establishment of strategic partnerships, acquisitions, and diversification into various sectors. Notable achievements include the launch of Mr. Biggs in the 1980s, strategic acquisitions in the 1990s leading to the expansion of its business portfolio, and the successful transition to a lean holding company model in 2018.

Fundamental Analysis

UAC of Nigeria Plc has reported impressive financial results for the year ended December 31, 2023. The company recorded a revenue of ₦119 billion, representing a 9% increase compared to the previous year. Gross profit saw a significant surge, reaching ₦21.8 billion, with a gross margin expansion to 18.4%.

Operating profit improved notably to ₦9.1 billion, compared to an operating loss in the previous year. Additionally, the company reported a strong cash position, with cash and cash equivalents totaling ₦25.3 billion.

Reasons to Invest in Q1 2024

UAC of Nigeria Plc looks like a promising investment option for the first quarter of 2024. This is because of its strong financial performance, a diverse range of businesses, and smart plans to keep growing. The company has seen growth in revenue across all its different parts, better profitability, and it’s working hard to run its operations more efficiently. This puts it in a good place to give back to its shareholders.

What’s more, UAC is dedicated to improving how well its businesses do and has a history of adapting and coming up with new ideas successfully. This makes it an attractive choice for investors wanting to join Nigeria’s fast-changing market.

4. Flour Mills of Nigeria Plc [FLOURMILL]

Founded in 1960, Flour Mills of Nigeria Plc (FMN) has grown from a pioneer wheat miller in Nigeria to become one of the leading brands in the foods and agro-allied industry in Africa. With a diverse business portfolio covering key sectors of the Nigerian economy, FMN operates in food, sugar, agro-allied, and support services. The company is dedicated to its mission of “feeding the nation” by producing a wide range of food options under its iconic brand, Golden Penny, which has earned the trust of consumers across Nigeria.

Ownership

FMN operates as a publicly listed company, with ownership distributed among various shareholders who hold stakes in the company.

Management

Under the leadership of its Group Managing Director/CEO, Mr. Omoboyede O. Olusanya, FMN is guided by a skilled management team committed to driving growth and innovation in the food and agro-allied sectors.

Past Achievements

Throughout its six-decade history, FMN has achieved significant milestones, including pioneering flour milling in Nigeria and expanding its operations to include food processing, sugar production, and agro-allied ventures.

The company’s flagship brand, Golden Penny, remains a household name and preferred choice among consumers. FMN has also made strategic investments in support services, such as packaging materials manufacturing and logistics, to strengthen its position in the market.

Fundamental Analysis

FMN reported robust financial results for the year ended March 31, 2023, with revenue reaching ₦1.54 trillion, driven by sales growth across its operating segments. Gross profit stood at ₦177.10 billion, reflecting the company’s strong operational performance.

Despite challenges such as rising costs, FMN maintained profitability, with an operating profit of ₦97.76 billion. The company’s prudent financial management and strategic investments position it well for sustained growth in the future.

Reasons to Invest in Q1 2024

Flour Mills of Nigeria Plc presents an attractive investment opportunity for Q1 2024 due to its established market presence, diversified business portfolio, and commitment to innovation. With its focus on local sourcing of raw materials, FMN is well-positioned to navigate market dynamics and capitalize on opportunities for growth in Nigeria’s food and agro-allied industry.

Additionally, the company’s track record of delivering value to shareholders, coupled with its strong financial performance, makes it a compelling choice for investors seeking exposure to the Nigerian market.

5. Africa Prudential Plc [AFRIPRUD]

Africa Prudential is a leading provider of registrar and investor services in Nigeria, offering a wide range of services to public and private companies. Established in 2006, it has become a trusted partner to businesses in managing their shareholder relationships.

Ownership

Owned by a diverse group of shareholders.

Management

Managed by a team of experienced professionals in the financial services industry, with oversight from a board of directors.

Past Achievements

Africa Prudential has a proven track record of delivering efficient and reliable registrar services to its clients and has achieved significant growth since its inception.

Fundamental Analysis

Africa Prudential Plc (AFRIPRUD) demonstrated strong financial performance in the period ended June 30, 2023. The company reported revenue of ₦1.21 billion, reflecting a significant increase compared to the same period in 2022. This growth in revenue indicates AFRIPRUD’s ability to effectively leverage its business operations and capture opportunities in the market. Additionally, the company achieved a gross profit of ₦658.38 million, indicating efficient cost management and operational excellence.

Furthermore, Africa Prudential recorded a net operating income of ₦1.63 billion, showcasing its ability to generate substantial earnings from its core business activities. Despite facing challenges such as credit loss expenses and operating costs, AFRIPRUD maintained profitability, reporting a profit after tax of ₦415.07 million. This profitability underscores the company’s resilience and strategic positioning in the market.

Reasons to Invest in Q1 2024

Investing in Africa Prudential Plc presents an attractive opportunity for Q1 2024. The company’s solid financial performance, evidenced by its revenue growth and profitability, shows its potential for delivering value to investors. With a track record of operational efficiency and effective risk management, AFRIPRUD is well-positioned to capitalize on opportunities in the financial services sector.

Moreover, Africa Prudential’s commitment to innovation and customer solutions positions it for sustained growth and market leadership. As the company continues to expand its product offerings and enhance its service delivery, investors can expect more capital appreciation and dividends.

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6. Meyer Plc [MEYER]

Meyer Plc stands as a leading manufacturer and marketer of high-quality paints and allied products. Established in 1960, the company has built a reputation for excellence in providing a diverse range of paints, including architectural paints, wood paints, auto refinishes, industrial and marine coatings, among others. With a focus on premium quality and innovation, Meyer Plc caters to various segments of the market, serving both individual consumers and commercial clients.

Ownership

Meyer Plc operates as a publicly listed company, with ownership distributed among various shareholders who hold stakes in the company. This diversified ownership structure reflects Meyer Plc’s commitment to transparency and accountability in its operations.

Management

Under the guidance of its management team, Meyer Plc is dedicated to driving growth and innovation in the paints and allied products industry. The management team leverages its expertise and experience to steer the company towards achieving its strategic objectives and delivering value to shareholders.

Past Achievements

Meyer Plc has a rich history of achievements, marked by its commitment to quality, innovation, and customer satisfaction. Over the years, the company has expanded its product portfolio, introduced cutting-edge technologies, and diversified its operations to meet the evolving needs of its customers. Meyer Plc’s legacy of excellence is reflected in its strong market presence and loyal customer base.

Fundamental Analysis

MEYER PLC reported robust financial results for the period ended December 31, 2023, with revenue reaching N’2,266,976,000. Despite challenges, the company achieved a gross profit of N’889,608,000 and a profit before tax of N’354,376,000. MEYER PLC’s financial performance reflects its strong operational capabilities and strategic positioning in the paints industry.

Reasons to Invest in Q1 2024

Investing in Meyer Plc in Q1 2024 presents an opportunity to benefit from the company’s strong market position, innovative product offerings, and sound financial performance. With its focus on quality, customer satisfaction, and operational excellence, Meyer Plc is well-positioned to capitalize on growth opportunities in the paints and allied products industry. Additionally, the company’s commitment to sustainable practices and value creation for stakeholders makes it an attractive investment choice for investors seeking long-term growth potential.

7. Presco Plc [PRESCO]

Presco Plc, established in 1991, is a publicly listed company based in Nigeria, primarily engaged in oil palm cultivation and processing. The company’s operations are centered around its estates located in Edo and Delta states, including the Obaretin Estate, Ologbo Estate, Cowan Estate, and Sakponba Estate. Presco’s integrated facilities encompass oil palm plantations, palm oil mills, refining plants, and palm kernel crushing plants.

Ownership

Presco Plc is a subsidiary of Siat s.a., a Belgian agro-industrial company specializing in tree crops such as oil palm and rubber. Siat s.a. has agronomists and economists among its shareholders, leveraging their expertise in developing agro-industrial ventures.

Management

Presco Plc is led by a dedicated management team committed to maintaining the company’s position as a leading player in Nigeria’s oil palm industry. The team focuses on strategic expansion and sustainable development initiatives to drive growth and profitability.

Past Achievements

Presco’s journey began with the government-initiated oil palm cultivation program in the 1970s, leading to the establishment of the Obaretin Estate. Since then, Presco has expanded its plantations through strategic acquisitions, including the Ologbo and Cowan estates. The company’s integrated operations make it a significant contributor to Nigeria’s agro-industrial sector.

Fundamental Analysis

For the nine months ended September 30, 2023, Presco reported a total revenue of ₦37.76 billion, reflecting its robust operational performance. Despite challenges such as administrative and distribution expenses, the company maintained a gross profit of ₦12.84 billion. Operating profit before finance costs and income stood at ₦5.60 billion, demonstrating Presco’s resilience amid market dynamics. The company’s strategic investments and integrated operations position it for sustained growth in the future.

Reasons to Invest in Q1 2024

Investing in Presco Plc in Q1 2024 presents an opportunity to gain exposure to Nigeria’s thriving oil palm industry. With a track record of sustainable development and expansion, Presco is poised to capitalize on the growing demand for palm oil and related products. The company’s integration across the value chain and commitment to quality make it a compelling investment choice for those seeking exposure to the agricultural sector in Nigeria.

8. Living Trust Mortgage Bank Plc [LIVINGTRUST]

LivingTrust Mortgage Bank Plc, established on March 9, 1993, transitioned from a Private Limited Liability Company to a Public Limited Liability Company on January 25, 2013. It is listed on the Nigerian Stock Exchange, enabling public trading of its shares.

The bank primarily offers mortgage financing, real estate construction finance, and various banking services to individuals, groups, and corporate entities. It has played a significant role in reducing housing deficits by providing mortgage loans to thousands of individuals and financing numerous estate development projects across Nigeria.

Ownership

LivingTrust Mortgage Bank Plc operates as a publicly traded company, with its shares available for trading on the Nigerian Stock Exchange. Ownership of the bank is diversified among various shareholders.

Management

Under the guidance of its management team, LivingTrust Mortgage Bank Plc is committed to delivering value to its stakeholders and driving financial inclusion through its mortgage financing and banking services. The management team is focused on strategic initiatives to support the bank’s growth and sustainability.

Past Achievements

LivingTrust Mortgage Bank Plc has made significant strides in the mortgage financing sector, advancing residential mortgage loans to thousands of individuals and financing estate development projects across Nigeria.

The bank’s efforts have contributed to reducing housing deficits and promoting mortgage inclusion, particularly among average and low-income earners. Additionally, its approval as a participating financial institution in MSME funding by the Central Bank of Nigeria underscores its commitment to supporting small businesses and driving economic growth.

Fundamental Analysis

LivingTrust Mortgage Bank Plc reported strong financial performance for the 4th quarter ended December 31, 2023. Gross earnings stood at ₦2.90 billion, with net interest income of ₦1.47 billion and total operating income of ₦2.06 billion.

Despite operating expenses, including personnel expenses and other operating expenses, the bank achieved a profit before tax of ₦846.81 million. With an income tax credit, the bank recorded a profit after tax of ₦745.80 million, demonstrating its ability to generate sustainable profits.

Reasons to Invest in Q1 2024

LivingTrust Mortgage Bank Plc presents an attractive investment opportunity for Q1 2024. The bank’s focus on mortgage financing, real estate construction finance, and banking services positions it well to capitalize on opportunities in Nigeria’s housing market. Its approval as a participating financial institution in MSME funding further enhances its growth prospects.

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9. Vitafoam Nigeria Plc [VITAFOAM]

Vitafoam Nigeria Plc, headquartered in Lagos, Nigeria, is a prominent foam manufacturing company known for producing a wide range of flexible and rigid polyurethane products. Established in 1962, it has grown to become one of Nigeria’s largest foam manufacturers, and one of the top Nigerian companies to invest your money in Q1 2024. With subsidiaries in Ghana and Sierra Leone, Vitafoam Nigeria Plc extends its reach across the African continent.

Ownership

Vitafoam Nigeria Plc operates as a publicly listed company, with ownership distributed among various shareholders who hold stakes in the company, contributing to its diversified ownership structure.

Management

Under the leadership of its management team, Vitafoam Nigeria Plc is committed to driving innovation, sustainability, and growth across its operations. The team is guided by a vision to maintain Vitafoam’s position as a leading player in the foam manufacturing industry in Africa.

Past Achievements

Vitafoam Nigeria Plc has a rich history of accomplishments, including its strategic alliance with Vono Products in 2011, which strengthened its position in the furniture market. The company has continuously expanded its product offering, investing in modern sleep options managed by subsidiaries like Vitapur, Vitagreen, Vitavisco, and Vitablom. Vitafoam’s commitment to innovation and quality has solidified its reputation as a trusted brand among consumers.

Fundamental Analysis

Vitafoam Nigeria Plc reported a sweet financial performance for the three months ended December 31, 2023. With revenue reaching ₦19.05 billion and gross profit standing at ₦6.63 billion, the company demonstrated robust operational efficiency. Despite challenges such as distribution costs and administrative expenses, Vitafoam maintained profitability, with an operating profit of ₦2.75 billion.

Reasons to Invest in Q1 2024

Vitafoam Nigeria Plc presents an attractive investment opportunity for Q1 2024 due to its established market presence, diverse product portfolio, and commitment to quality. With a track record of delivering value to shareholders and a focus on innovation, Vitafoam is well-positioned to capitalize on growth opportunities in the foam manufacturing industry.

10. Cadbury Nigeria Plc [CADBURY]

Cadbury Nigeria Plc is another one on our list of Nigerian companies to invest your money in Q1 2024. It’s a food, sweets, and drink company headquartered in Lagos, Nigeria, and traded on the Nigerian Stock Exchange. As a subsidiary of Mondelez International, a global snacking giant, Cadbury Nigeria is renowned for its flagship product, Bournvita, and competes with brands like Nestle, GlaxoSmithKline, and Promasidor.

The company specializes in the production and sales of food products, focusing on confectionery and beverages such as Bournvita, Tom Tom, Ahomka, Ginger, Hacks, and Buttermint brands, as well as cocoa-based products including cocoa powder, cocoa butter, cocoa liqueur, and cocoa cakes.

Ownership

Cadbury Nigeria Plc operates as a subsidiary of Mondelez International, one of the largest snacking companies globally. The ownership structure is established within the framework of Mondelez International’s broader portfolio, providing Cadbury Nigeria with strategic support and resources for its operations in Nigeria.

Management

Under the leadership of its management team, Cadbury Nigeria Plc is committed to driving innovation, quality, and growth across its product offerings. The management team’s expertise and strategic vision guide the company in navigating the competitive landscape of the Nigerian food and beverage industry while ensuring alignment with Mondelez International’s global objectives.

Past Achievements

Cadbury Nigeria has a rich history of achievements, with Bournvita emerging as a market leader in its category following strategic investments in advertising and product innovation. The company’s expansion into cocoa-based products and the introduction of essential vitamins and minerals in Bournvita have further strengthened its market position. Additionally, Cadbury Nigeria has reported significant financial growth, with a 110% increase in profit after tax in the 2022 financial year compared to the previous year.

Fundamental Analysis

Despite challenges, Cadbury Nigeria Plc reported impressive financial performance for the year ended December 31, 2023, with revenue reaching ₦80.38 billion, representing a 46% increase compared to the previous year. The company’s gross profit stood at ₦17.79 billion, reflecting a 130% increase, while results from operating activities improved significantly to ₦8.40 billion.

However, the company reported a loss before tax of ₦27.63 billion, attributed to various factors affecting the operating environment. Despite this, Cadbury Nigeria remains a resilient player in the Nigerian food and beverage industry.

Reasons to Invest in Q1 2024

Cadbury Nigeria Plc presents an intriguing investment opportunity for Q1 2024 due to its established market presence, diverse product portfolio, and affiliation with Mondelez International.

Conclusion

Investing in the Nigerian stock market offers exciting opportunities for individuals looking to grow their wealth in 2024. We’ve highlighted ten Nigerian companies to invest in with promising prospects for the first quarter of the year, across various sectors including consumer goods, education, agriculture, real estate, and financial services.

As you consider your investment strategy for Q1 2024, remember that the stock market carries inherent risks. While our article serves as a starting point for your investment journey, you should also make your own research and diversify your portfolio.

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Disclaimer: Investing in the stock market involves risk, and our article is for informational purposes only. Make informed decisions and invest wisely.

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