Golden Guinea Breweries Maintains Uptrend, Rises by 60%
Beer producer, Golden Guinea Breweries Plc, has been priced higher again on the Nigerian Exchange (NGX). This surge in its market capitalisation has been consistent in the last few weeks.
With expectation to get better return on investment, value hunting equities investors have continued to buy the beer producer’s shares in the local bourse. In the current month, the stock has seen strong re-pricing in the equities market.
Investors sentiment has been identified as major driver of the company re-rating. Golden Guinea Breweries avoid direct competition with key rivals by limiting its geographical footprint to south east.
The share price of the niche player among Nigerian brewers hit fresh 52-week high again in the just concluded week. The market price of Golden Guinea Breweries who sells about 100% of its beers in South East rose by 60% in 5-days.
According to data from the Nigerian Exchange, the beer producer which focus in selling in south east surged to N8.64 due to strong demand from value hunters with strong appetite for the stock.
The positive price movement spanning all days drove equities market value of Golden Guinea Breweries to about N8.9 billion on the Nigerian Exchange. At the end of its first half year earnings results in Sept, Golden Guinea Brew revenue skyrocketed to N170.846 million from N1.48 million in the comparable period in 2023.
But operating costs accelerated faster, reducing positive impacts of sales growth. The company net loss widened from N12.167 million to N29.597 million at the end of second quarter of 2024. Golden Guinea brew said most of its drinks were predominantly from South Eastern geographical location. #Golden Guinea Breweries Maintains Uptrend, Rises by 60%# Weak Naira Boosts Export, Fuels Trade Surplus –Analysts
