FanMilk Ghana records net profit of US$2.34M in Q1 2025

GHANA – FanMilk, a dairy manufacturer, has reported a net profit of GHS24.10million (US$2.34 million) in Q1-2025 – an increase of 66 per cent compared to GHS14.53million (US$1.41 million) in the same period last year.

Total assets increased to GHS 650.34 million (US$63.15 million) compared to GHS 636.65 million (US$61.82 million) in Q1 2024. Total liabilities stood at GHS 353.51 million (US$34.33 million), from GHS 393.03 million (US$38.16 million).

Equity increased to GHS 296.84 million (US$28.82 million) from GHS 243.62 million (US$ 23.66 million). Earnings per share (EPS) rose to GHS 0.21 from GHS 0.13. Gross profit increased by 53% to GHS 90.72 million (US$8.81 million).

Revenue surged by 57% to GHS 242.18 million (US$23.52 million) compared to GHS 154.59 million (US$15.01 million) in Q1 2024.

Profit after tax (PAT) saw a significant increase of 66%, reaching GHS 24.10 million (US$2.34 million) compared to GHS 14.53 million (US$1.41 million) in the same period last year.

Net cash inflow from operating activities reached GHS 25.30 million (US$2.46 million), significantly higher than GHS 143.58 million (US$13.94 million) in FY 2024.

Investing activities resulted in a net cash outflow of GHS 5.43 million (US$527,253), primarily due to capital expenditure. Financing activities recorded a net cash outflow of GHS 19.87 million (US$1.93 million).

The Head of Finance Controlling at FanMilk, Kplom Fiogome, indicated that the company is on course to achieving 100 percent local sourcing of raw materials to cushion the company from vagaries of the exchange market and also reduce pressure on the country’s foreign reserves.

He, however, expressed difficulty in sourcing some of their ingredients domestically, stating, “A large portion of our ingredients today is milk whey powder, and you cannot get it in Ghana. That is the challenging bit.”

The company also reported a net profit of 54.2 million cedis (US$3.5 million) for the 2024 fiscal year, more than doubling the 24 million cedis (US$1.56 million) recorded in the previous year.

A report by the company highlights that its operating margin improved from 6% in 2023 to 12% in 2024, with cost-saving strategies such as raw material price negotiations, optimized product mix, and targeted promotions contributing to this achievement.

“The improvement in gross margin is the result of productivity initiatives such as raw material price negotiation, better product mix, improved product availability, and smart promotions aimed at expanding the customer base,” the report stated.

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