Shares of Betaglas, a leading glassware company, have climbed over 15% month-to-date, bringing its total growth for November and December to 27%, with the stock currently priced at N57.
The company’s performance came after the release of its third-quarter financial report on October 30, which revealed a pre-tax profit of N6.1 billion, marking a significant 239% year-on-year (YoY) increase from N1.8 billion reported in 2023.
Revenue also increased by 105% year-on-year to N31.8 billion for the quarter, bringing the nine-month total to N79.7 billion, with over 95% of it derived from the sale of glassware and bottles.
Betaglas also reported ‘other income’ of N815 million for the third quarter, with transport-related income accounting for N732 million of this total.
Following the release of these results, Betaglas saw a period of moderate bullish sentiment in the Nigerian stock market in November, recovering from a low of N45 in October.
In early December, the bullish momentum strengthened, driving the company’s shares up by over 15% month-to-date as of the market open on December 9, 2024.
Market trend:
Betaglas began the year with a share price of N59 and a market volume of 599,000 shares. For the first five months, price movement remained relatively stable, though market activity showed a decline.
- In June, however, the stock faced a downturn, slipping below its opening price of N59 and struggling to maintain the N53 range.
- This decline persisted, and by October, Betaglas shares had reached a low of N45.40, despite a brief bullish rally in September, which saw a significant increase in trading volume to 2.7 million shares.
- In November, the stock showed signs of recovery, closing at N49 as it began to correct from the previous month’s lows.
Early December has witnessed a surge in buying momentum, with the stock already up by over 15%, continuing its upward trajectory as it gradually recovers from October’s dip.
Possible drivers of bullish price action:
Several key factors appear to have contributed to the recent bullish price action and sentiment in Betaglas shares.
- In June 2024, the company partnered with Wecyclers to launch a fleet of cullet trucks to improve glass recycling, boosting operational efficiency.
- Another significant development was the rapid upgrade and cold repair of the GF1 furnace at the Guinea plant, completed in an industry-record 32 days.
- Additionally, Betaglas’ third-quarter financial report, released on October 30, showcased a remarkable 104.9% year-on-year revenue growth, reaching N31.8 billion.
- The company’s pre-tax profit surged by 239.9% to N6.1 billion, signaling strong operational performance and strategic growth.
Following these fundamental events, Betaglas shares began an upward trajectory in November, reflecting renewed investor confidence.
About the company
Beta Glass Plc, founded in 1974 and based in Lagos, Nigeria, manufactures and supplies glassware products.
- A subsidiary of Frigoglass Industries Nigeria Limited, the company produces glass bottles and containers for various industries, including soft drinks, breweries, pharmaceuticals, food, wine and spirits, and cosmetics.
- The company exports its products to several West African countries, including Ghana, Ivory Coast, Liberia, Sierra Leone, South Africa, and Burkina Faso. Beta Glass offers a range of glass containers, from 30 milliliters to 1.5 liters, in colors such as white, flint, amber, and emerald green.
With manufacturing plants in Agbara (Ogun State) and Ughelli (Delta State), Beta Glass serves as a key supplier of glass packaging across the region, supporting the development of emerging markets.