Livestock Feeds Plc Records Mixed Q3 2025 Performance So Far

News in brief:

-Livestock Feeds Plc posted strong early gains in 2025 but has since faced sharp volatility, with its share price sliding to ₦7.75 in September.

-Rising costs and shrinking margins continue to weigh on profitability despite robust sales growth.

Strong Q1 Rally, Slower Q2 Momentum

Livestock Feeds Plc started 2025 on a strong note. In Q1, its stock surged 78.64%, rising from ₦4.87 to ₦8.70. The rally was one of the most impressive on the Nigerian Exchange (NGX) during the quarter.

However, that momentum slowed in Q2. The stock gained just 2.30%, closing at ₦8.90 as investors grew cautious over the company’s shrinking profitability despite rising sales.

Volatile Trading in Q3 2025

The third quarter has so far been marked by sharp swings. The stock opened in July at ₦9.20, climbing slightly in the first two weeks before dropping to ₦8.60 in Week 3 (–9.47%). A brief rebound took it to ₦9.00 in Week 4, only for it to plunge again to ₦8.05 in Week 5 (–10.56%).

While Week 6 brought recovery at ₦8.90 (+10.56%), subsequent weeks were weaker. The stock slipped to ₦8.05 in Week 7, ₦8.00 in Week 8, remained flat in Week 9, and ended early September at ₦7.75 (–3.13%).

Cost Pressures Weigh on Profitability

Behind this volatility are steep cost challenges. In Q1 2025, Livestock Feeds reported that net income plunged nearly 80% year-on-year, despite revenue jumping 51% to ₦10.8 billion. Cost of sales surged 53% to ₦9.2 billion, while finance costs spiked 116% to over ₦1 billion.

The result: pre-tax profit fell to just ₦57 million, compared to ₦270 million in Q1 2024. Analysts highlight inflation, FX volatility, and logistics costs as key drags on Nigeria’s agribusiness sector.

Market Outlook

Despite pressures, sales volumes remain strong, with Aba and Ikeja operations leading growth. This underpins investor interest, even as profitability struggles.

As of early September, Livestock Feeds trades between ₦7.75 and ₦8.00, well below Q1 highs. With UAC of Nigeria Plc as its majority shareholder, the focus now is on whether management can rein in costs, stabilise margins, and rebuild investor confidence in the months ahead.