- Fan Milk Q1 Revenue Rises 33% as Profit Before Tax Jumps 84%
Fan Milk PLC posted a strong first-quarter performance for 2026, with revenue rising by 33% year-on-year to GH¢321.6 million, from GH¢242.2 million in the same period of 2025. The Ghana Stock Exchange-listed dairy producer said profit before tax increased by 84% to GH¢61.2 million, compared with GH¢33.2 million a year earlier, reflecting stronger sales growth and improved gross margins.
Gross profit rose sharply to GH¢150.3 million, from GH¢90.7 million in the first quarter of 2025, representing a 66% increase. The improvement suggests that the company was able to grow revenue at a faster pace than cost of sales, which increased to GH¢171.4 million, from GH¢151.5 million.
Operating profit nearly doubled to GH¢59.6 million, compared with GH¢31.1 million in the corresponding period of 2025. The stronger operating performance came despite higher sales and distribution costs, which rose to GH¢56.1 million, from GH¢33.5 million, and administrative expenses, which increased to GH¢26.9 million, from GH¢20.1 million.
Finance income improved to GH¢4.0 million, from GH¢3.4 million, while finance costs rose to GH¢2.4 million, from GH¢1.3 million.
Profit after tax increased more modestly, rising to GH¢27.6 million, from GH¢24.1 million in the first quarter of 2025. The slower growth in net profit was due largely to a sharp increase in income tax expense, which rose to GH¢32.0 million, from GH¢8.3 million. The Growth and Sustainability Levy also increased to GH¢1.5 million, from GH¢831,000.
Earnings per share improved to GH¢0.24, from GH¢0.21, based on 116.2 million shares outstanding.
Fan Milk’s balance sheet also expanded during the period. Total assets rose to GH¢811.9 million, from GH¢650.3 million a year earlier. Current assets increased to GH¢624.5 million, supported by a significant rise in cash and cash equivalents to GH¢382.8 million, compared with GH¢129.0 million in March 2025.
Inventory declined to GH¢80.4 million, from GH¢120.1 million, while trade and other receivables fell to GH¢151.2 million, from GH¢222.1 million. The reduction in receivables and inventory, alongside stronger cash generation, points to improved working capital management during the period.
Net cash inflow from operating activities increased sharply to GH¢155.5 million, compared with GH¢25.3 million a year earlier. Cash generated from operations stood at GH¢163.9 million, from GH¢26.1 million in 2025.
The company invested GH¢3.4 million in capital expenditure during the quarter, mainly through the purchase of plant and equipment. Total equity increased to GH¢359.4 million, from GH¢296.8 million, supported by retained earnings of GH¢349.4 million.
Fan Milk said its principal activity remains the manufacture, production and distribution of recombined milk and other dairy products, as well as wholesale and retail trading in related preserved provisions. The financial statements were prepared in accordance with International Financial Reporting Standards and the Companies Act, 2019, Act 992.
The key test for the rest of 2026 will be whether Fan Milk can sustain revenue growth while containing distribution and administrative costs, especially in a competitive consumer goods market where purchasing power, logistics costs and input prices remain central to performance.
