Fan Milk PLC has reported a robust financial performance for the first quarter of 2026, with revenue rising by 33 percent year-on-year to GH¢321.6 million, up from GH¢242.2 million in the same period last year.
The company’s profit before tax surged by 84 percent to GH¢61.2 million, reflecting strong sales momentum and improved gross margins. The results highlight a solid start to the year for the Ghana Stock Exchange-listed dairy producer.
Gross profit climbed significantly to GH¢150.3 million from GH¢90.7 million, indicating that revenue growth outpaced increases in the cost of sales. Operating profit also nearly doubled to GH¢59.6 million, compared to GH¢31.1 million in the first quarter of 2025.
Despite rising costs, including sales and distribution expenses of GH¢56.1 million and administrative costs of GH¢26.9 million, the company maintained strong operational efficiency.
Finance income improved modestly to GH¢4.0 million, while finance costs increased to GH¢2.4 million, reflecting a higher cost of funding.
Net Profit Growth Slowed by Higher Taxes
Profit after tax rose to GH¢27.6 million from GH¢24.1 million, representing a more moderate increase. This was largely due to a sharp rise in income tax expenses, which climbed to GH¢32.0 million from GH¢8.3 million.
The Growth and Sustainability Levy also increased during the period, contributing to the slower pace of net profit growth despite strong operating performance. Earnings per share improved slightly to GH¢0.24, up from GH¢0.21.
Fan Milk’s balance sheet expanded significantly, with total assets reaching GH¢811.9 million. Cash and cash equivalents rose sharply to GH¢382.8 million, supported by strong operating cash flows.
Net cash inflow from operations surged to GH¢155.5 million, compared to GH¢25.3 million a year earlier. The company also improved its working capital position, with reductions in inventory and receivables.
While the first-quarter performance underscores strong growth, the key challenge for the remainder of 2026 will be sustaining revenue momentum while managing rising distribution and administrative costs in a competitive consumer market.
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