• Friday, December 01, 2023
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Livestock Feeds rises most in 7 weeks on profit bets


Livestock Feeds Plc, a Nigerian company which produces and markets animal feeds, gained the most in seven weeks as investors bought the company’s shares on speculation full-year profit will rise.

The stock rose 5 percent to N2.31 at the close on Monday in Lagos, the commercial capital. That is the biggest advance since January 22, according to data compiled by Bloomberg.

“Investors are expecting full-year profit to rise given the company’s performance last year and expansion in production capacity,” Chris Okoro, an analyst at Lagos-based Cosord Securities Ltd., said. “The result is expected within two weeks.”

Livestock Feeds’ half-year profit through June, more than doubled to N60 million from N25 million, it said in a statement to the Nigerian Stock Exchange (NSE) July 31. Revenue advanced to N2.5 billion from N1.3 billion.

UAC of Nigeria Plc, a Nigerian company with interests in food products, logistics and real estate services, said last year it was buying a majority stake in the feed producer, to take advantage of the synergies between the two companies in the animal feeds industry. Livestock shares have risen 60 percent this year, compared with a 17 percent gain in the Nigerian Stock Exchange All-Share Index, (NSEASI).