Multi-Trex Shares Gain 17.95% After NGX Ends 8-Year Suspension

Shares of Multi-Trex Integrated Foods Plc have climbed 17.95 per cent since the Nigerian Exchange lifted a trading suspension that had kept the cocoa processor off the market for nearly eight years, even as the company's underlying finances remain deep in the red.

The stock rose from N0.39 on its resumption day to N0.46 by the close of trading on Monday, a gain that has drawn fresh attention to a company that was frozen out of the market for failing to file its financial statements.

Eight years in the cold

The NGX had suspended trading in Multi-Trex shares since November 1, 2018, after the company failed to file the required financial statements under the exchange's Default Filing Rules. The suspension was lifted on October 7, 2026, following the submission of the company's outstanding accounts, allowing investors to trade the stock for the first time in almost eight years.

The resumption triggered pent-up trading interest. In the week to October 9, Multi-Trex rose 16.67 per cent, ranking among the exchange's top weekly gainers. The stronger 17.95 per cent figure reflects the move from the N0.39 resumption price to Monday's N0.46 close.

The fundamentals behind the rally

The rally is not, on the face of it, supported by profitability. In the financial year ended April 30, 2026, Multi-Trex recorded turnover of N3.61 billion, a more than 70-fold increase from N47.9 million a year earlier, as its cocoa-processing operations scaled up. Gross profit rose to N512.7 million from N41.1 million.

But a sharp rise in operating expenses, to N1.11 billion from N655.9 million, and finance charges of N86 million pushed the company to a loss after tax of N615.1 million, wider than the N423.2 million loss recorded the previous year.

Business Insight

Multi-Trex is a case study in the difference between a stock's price and a company's health. The share price is rising because the stock was unlocked after years of illiquidity and because investors see a recovery story in the making — not because the business is currently profitable. The company's revenue growth is genuine and reflects real capacity, but its cost base is running ahead of its income.

For investors, the risk is that the post-resumption enthusiasm outpaces the operational turnaround. For the company, the priority is to convert its swelling cocoa volumes into margins, control overheads and refinance the debt that is generating finance charges.

Background

Multi-Trex is a cocoa-processing company that converts raw beans into products for domestic and export markets. Its long suspension was one of the most protracted on the NGX, and its return is part of a broader pattern of the exchange clearing backlogs of delinquent filings. Cocoa prices have been exceptionally high in 2026, which offers both an opportunity and an input-cost challenge for processors.

Conclusion

Eight years is a long time to be locked out of the market, and Multi-Trex's return is a welcome development for shareholders who had no exit. But the share price gain will only be sustainable if the company can turn its rising turnover into profit. Until then, the rally rests on hope as much as on earnings.