Dannex Ayrton Starwin Public Limited Company (PLC) recorded a 92.5 percent drop in profit after tax to GH¢0.51 million for the nine months ended September 30, 2025, according to its unaudited financial statements released in Accra. The pharmaceutical manufacturer’s earnings plummeted from GH¢6.79 million in the corresponding period of 2024, despite modest revenue growth.
Revenue for the period increased 3.0 percent to GH¢134.76 million from GH¢130.83 million in 2024. However, the company’s gross profit margin contracted to 54.0 percent from 56.4 percent as cost of sales rose 8.7 percent to GH¢62.03 million. Gross profit declined to GH¢72.73 million from GH¢73.75 million, signaling pressure on margins likely driven by higher input costs.
Earnings before tax fell 74.8 percent to GH¢2.51 million from GH¢9.94 million, while earnings per share dropped sharply to GH¢0.0060 from GH¢0.0802. The decline in profitability was driven by escalating operating expenses, which increased 11.1 percent to GH¢64.25 million, and finance costs that surged 64.2 percent to GH¢6.67 million from GH¢4.06 million in 2024.
The company’s cash flow position deteriorated significantly during the period. Net cash from operating activities recorded a negative GH¢6.87 million, a dramatic reversal from a positive GH¢11.73 million in 2024. The company ended the period with a bank overdraft of GH¢20.35 million, up from GH¢11.99 million, while cash and bank balances fell to GH¢2.43 million from GH¢8.79 million.
Total assets increased to GH¢116.54 million from GH¢101.54 million, driven largely by inventory accumulation of GH¢41.38 million compared to GH¢33.85 million in the prior period. The inventory buildup, along with rising trade receivables, tied up working capital and contributed to the cash flow pressures. The company’s current ratio stood at 1.15, calculated from current assets of GH¢82.63 million against current liabilities of GH¢71.98 million, indicating a thin cushion for meeting short term obligations.
Dannex Ayrton Starwin PLC operates as Ghana’s largest pharmaceutical manufacturer following the 2020 merger of Dannex Limited (established 1964), Ayrton Drug Manufacturing Limited (incorporated 1965), and Starwin Products Limited (formed 1960). The company manufactures and distributes pharmaceutical products including tablets, capsules, syrups, suspensions, creams, ointments, disinfectants, and veterinary products across West Africa.
Earlier in 2025, the company reported a net loss for the first half of the year, citing currency instability and rising administrative expenses as primary pressures. Despite the challenging nine month performance, Chairman Nik Amarteifio previously stated the company leveraged internal efficiencies, pricing strategies and market positioning to navigate liquidity constraints and rising operating costs.
The financial statements were prepared on a going concern basis, though the company’s liquidity position and negative operating cash flow suggest working capital management remains a critical focus area. The company has not declared dividends, choosing instead to preserve cash for operational needs and infrastructure investments.
