Ghana’s leading dairy producer, Fan Milk PLC, reported a robust financial performance for the year ended 31 December 2024, with net profit soaring to GH¢49.455 million, a 106% increase from GH¢24.012 million in 2023.
The Board of Directors has recommended a dividend of GH¢0.08 per share, up from GH¢0.05 in the prior year, pending shareholder approval at the upcoming Annual General Meeting.
Revenue climbed by 24% to GH¢683.822 million, driven by strong demand for dairy products, which accounted for 88% of total sales. Gross profit rose to GH¢248.285 million, bolstered by cost management strategies that limited distribution and administrative expenses to GH¢120.681 million and GH¢51.002 million, respectively. Cash reserves also surged by 66% to GH¢109.105 million, reflecting improved liquidity.
The company’s financial health was further underscored by a reduction in medium-term debt, with the full repayment of a GH¢55 million loan from Stanbic Bank. However, challenges emerged, including a GH¢1.8 million stock discrepancy linked to fraudulent activity by a supply chain employee. The case, now under police investigation, prompted internal control reviews and enhanced oversight measures.
Boardroom dynamics saw significant shifts, with the resignation of Non-Executive Directors George H.O. Thompson and Hervé Barrère, replaced by Nii Amanor Dodoo and Hendrik Born. Chairperson Freda Yahan Duplan emphasized governance reforms, including the adoption of a Board Charter and compliance training to align with Ghana’s Securities and Exchange Commission standards.
Sustainability initiatives under the Danone Impact Journey absorbed GH¢3.848 million, targeting community welfare, environmental conservation, and health programs. The company also expanded its product portfolio, with plant-based milk sales jumping to GH¢126.897 million, signaling diversification in response to shifting consumer preferences.
Fan Milk PLC, majority-owned by Denmark’s Fan Milk International A/S, remains a cornerstone of Ghana’s dairy sector. Its resilience amid inflationary pressures and supply chain risks highlights strategic agility, though the fraud incident underscores the need for vigilance in operational oversight. With a renewed board and fortified financials, the firm aims to consolidate its market leadership while navigating Ghana’s evolving economic landscape.
