Fan Milk PLC Delivers Strong Q1 Earnings as Profit Surges 80% on Cost Discipline and Revenue Growth
- Fan Milk’s Q1 Profits Churn Up a Cool 80% Boost
Fan Milk PLC, the Ghanaian dairy and frozen food producer majority-owned by Danone, has reported a sharp increase in its first-quarter profit, underscoring the company’s operational resilience amid ongoing macroeconomic pressures. The company posted a net profit of GHS 7.1 million for the three months ending March 2025, up from GHS 3.9 million in the same period last year, a rise of over 80% year-on-year.
The earnings rebound was powered by a 12.8% increase in revenue to GHS 147.1 million, reflecting improved market penetration and a stable pricing environment despite inflationary headwinds. Cost of sales grew at a similar pace, up 12.4% to GHS 106.2 million, but management’s continued focus on cost containment and operational efficiencies resulted in a 13.8% jump in gross profit to GHS 40.9 million.
Operating expenses rose modestly by 4.4% to GHS 29.4 million, well below the pace of top-line growth, further amplifying the company’s profitability. This improvement translated into an operating profit of GHS 11.5 million, a robust 47.7% increase from the GHS 7.8 million posted in Q1 2024.
Fan Milk also benefitted from a notable decline in net finance costs, which fell by 24.2% to GHS 1.8 million. This likely reflects a mix of better working capital management and favourable short-term debt positions amid a tightening interest rate environment. Profit before tax rose 79.3% to GHS 9.7 million, while income tax expense nearly doubled to GHS 2.6 million, aligned with the stronger bottom line.
The company’s basic earnings per share (EPS) stood at GHS 0.060, up from GHS 0.033 in Q1 2024, representing an 81.8% improvement and indicating stronger returns for shareholders.
This performance suggests that Fan Milk is executing effectively on its medium-term strategy to grow market share while protecting margins. The Q1 results also underscore the relative strength of Ghana’s fast-moving consumer goods (FMCG) sector, especially for companies with efficient distribution models and established brand loyalty.
While Ghana’s broader economic outlook remains fraught with uncertainty, including foreign exchange volatility and high utility costs, Fan Milk’s early 2025 performance signals that disciplined cost structures and targeted sales growth can still yield strong shareholder value.
Fan Milk has not yet issued formal guidance for the rest of the year, but if the company sustains this momentum, it may be on track to deliver its strongest annual performance since the pre-COVID era. Investors will be watching closely for Q2 developments, especially around raw material pricing, currency exposure, and demand elasticity in key markets.
