Fan Milk reports revenue of US$28.5M in Q1 2026

GHANA – Fan Milk PLC has reported an 84 per cent surge in profit before tax to US$5.42 million (GH₵61.2 million) for the first quarter ended March 31, 2026, compared with US$2.94 million (GH₵33.2 million) in the same period last year.

The Accra-based dairy products manufacturer, known for its frozen yoghurt and ice cream brands, saw revenue leap by 33 per cent to US$28.47 million (GH₵321.6 million), up from US$21.45 million (GH₵242.2 million) in the prior year quarter, as consumer demand held firm and distribution channels remained resilient despite the broader economic pressures.

Gross profit was US$13.3 million (GH₵150.3 million), reflecting improved cost management even as cost of sales rose to US$15.17 million (GH₵171.4 million).

However, the cost of doing business also accelerated. Sales and distribution costs jumped to US$4.97 million (GH₵56.1 million), while administrative expenses increased to USD $2.38 million (GH₵26.9 million).

Depreciation and amortisation charges edged higher to US$690,000 (GH₵7.8 million), and finance costs nearly doubled to USD $212,400 (GH₵2.4 million), driven by higher interest obligations.

A striking feature of the quarter was the sharp rise in income tax expense, which ballooned to US$2.83 million (GH₵32 million).

Together with a Growth and Sustainability Levy of US$133,000 (GH₵1.5 million), the total tax charge consumed more than half of profit before tax.

Consequently, profit for the year came in at US$2.44 million (GH₵27.6 million), representing a more modest 14.6 per cent increase in bottom-line profit after tax.

Earnings per share improved from GH₵0.21 to GH₵0.24, offering a modest uplift to shareholders. The company spent US$301,000 (GH₵3.4 million) on capital expenditure during the quarter and paid no dividend in the period, retaining earnings to strengthen its balance sheet.

On the liquidity front, Fan Milk demonstrated robust cash generation. Net cash inflow from operating activities soared to US$13.76 million (GH₵155.5 million), pushing cash and cash equivalents to US$33.9 million (GH₵382.8 million).

That substantial cash pile leaves the company well positioned for future investments or potential shareholder returns.

Total assets expanded to US$71.8 million (GH₵811.9 million), while retained earnings climbed to US$30.9 million (GH₵349.4 million), lifting total equity to US$31.8 million (GH₵359.4 million).

Trade and other payables, however, increased to USD $36.8 million (GH₵416.2 million), signalling tighter working capital pressure on suppliers.

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