Fan Milk PLC delivers 84% profit growth in first quarter of 2026
Fan Milk PLC has stormed into the 2026 financial year with an emphatic performance, posting an 84 per cent surge in profit before tax to GH₵61.2 million for the first quarter ended March 31, 2026, compared with GH₵33.2 million in the same period last year.
The Accra-based dairy products manufacturer, known for its frozen yoghurt and ice cream brands, saw revenue leap by 33 per cent to GH₵321.6 million, up from GH₵242.2 million in the prior year quarter, as consumer demand held firm and distribution channels remained resilient despite the broader economic pressures.
Gross profit nearly doubled in percentage terms, climbing from GH₵90.7 million to GH₵150.3 million, reflecting improved cost management even as cost of sales rose to GH₵171.4 million from GH₵151.5 million. The company’s gross margin expanded significantly, underscoring better purchasing efficiencies and pricing strategies.
However, the cost of doing business also accelerated. Sales and distribution costs jumped to GH₵56.1 million from GH₵33.5 million, while administrative expenses increased to GH₵26.9 million from GH₵20.1 million. Depreciation and amortisation charges edged higher to GH₵7.8 million, and finance costs nearly doubled to GH₵2.4 million, driven by higher interest obligations.
A striking feature of the quarter was the sharp rise in income tax expense, which ballooned to GH₵32 million from GH₵8.3 million a year earlier. Together with a Growth and Sustainability Levy of GH₵1.5 million, the total tax charge consumed more than half of profit before tax. Consequently, profit for the year came in at GH₵27.6 million, compared with GH₵24.1 million in 2025, representing a more modest 14.6 per cent increase in bottom-line profit after tax.
Earnings per share improved from GH₵0.21 to GH₵0.24, offering a modest uplift to shareholders. The company spent GH₵3.4 million on capital expenditure during the quarter and paid no dividend in the period, retaining earnings to strengthen its balance sheet.
On the liquidity front, Fan Milk demonstrated robust cash generation. Net cash inflow from operating activities soared to GH₵155.5 million from GH₵25.3 million, pushing cash and cash equivalents to GH₵382.8 million as at March 31, 2026, up from GH₵129 million at the same point last year. That substantial cash pile leaves the company well positioned for future investments or potential shareholder returns.
Total assets expanded to GH₵811.9 million from GH₵650.3 million, while retained earnings climbed to GH₵349.4 million, lifting total equity to GH₵359.4 million. Trade and other payables, however, increased to GH₵416.2 million from GH₵335 million, signalling tighter working capital pressure on suppliers.