GHANA – Fan Milk Plc, a key player in Ghana’s dairy industry, has 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.
The financial results, published on the Ghana Stock Exchange, indicate a strong performance despite challenges in the export segment, which declined by about 18%.
The company attributes its success to increased product sales, with turnover rising by 24% year-on-year to 683.4 million cedis (US$44.6 million).
Measures aimed at reducing operational costs and improving the gross margin also played a significant role.
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.
Despite the rise in sales, expenses continued to grow, with sales costs, distribution costs, administrative expenses, and taxes increasing by 12.6%, 14.7%, 54.3%, and 57.7% respectively, totaling over 641.6 million cedis (US$41.9 million).
However, the company’s ability to manage costs while increasing revenue has solidified its market position.
According to industry projections, Ghana’s dairy market is expected to generate $650 million in revenue by 2025, with an estimated annual growth rate of 9.07% until 2029.
Fan Milk sees its 2024 performance as an indication of its growing strength in this expanding market.
“We have positioned ourselves for long-term growth by focusing on efficiency and innovation,” a company representative said.
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