... reaches 75 percent automation
By Kingsley Webora TANKEH
In the first quarter of 2025, FanMilk Ghana saw its net profit rise to GH¢24.10 million, marking a 66% jump from the GH¢14.53 million reported during the corresponding period the previous year.
The firm likewise reached a 75 percent level of automation within its manufacturing procedures.
At the 'Behind the Numbers' event organized by the Ghana Stock Exchange, FanMilk Managing Director Lionel Parent stated:
"We think that robust finances aren’t solely tied to profit; they’re also linked to purpose. It’s about generating value for stakeholders, making an impact on people’s lives, and fostering a sustainable tomorrow," underscoring the firm's dedication to societal well-being.
The distinctive bicycle sales approach employed by this firm offers ways to enhance the well-being of people in Ghana through efforts aimed at reducing poverty. This initiative also involves offering employment to over 8,000 bicycle, pushcart, and headpan sellers who have been hired and are overseen by more than 1,000 agents nationwide.
In total, FANMILK has provided direct employment to over 1,000 Ghanaians and supported more than 10,000 indirect jobs throughout the country.
Kplom Fiogome, who leads finance controlling at FanMilk, stated that the firm aims for complete local procurement of raw materials. This strategy is intended to protect the business from fluctuations in the currency exchange market and lessen strain on the nation's foreign reserve assets.
Nevertheless, he mentioned facing challenges in obtaining certain ingredients within the country.
“Much of what we use today consists of milk whey powder, which is not available in Ghana. This presents the challenge,” he pointed out.
We're approaching 50 percent local sourcing. Previously, we sourced our cocoa entirely from external sources. Recently, you might have noticed our new agreement with FairAfrik. Now, this process happens domestically instead," he explained further. "The focus is on adjusting the balance between imports and domestic procurement as part of our ongoing commitment.
This year celebrates the 65th anniversary of Fanmilk Ghana. We are delighted to recount the narrative hidden within these figures—a tale of resilience, a saga of innovation, and an unyielding dedication to both our staff and collaborators," stated the Managing Director.
"We trust that Fanmilk will regain the prestige it has consistently maintained. While presenting our performance, we aim to offer more than just an overview of our finances; we want to delve deeply into the strategic vision guiding our evolution," he stated.
Overall revenue jumped by 57 percent to GH¢242.18 million from GH¢154.59 million in the first quarter of 2024.
Total assets grew significantly to GH¢650.34 million in Q1 of 2025, up from GH¢636.65 million in Q1 of 2024. Meanwhile, liabilities were recorded at GH¢353.51 million, down from GH¢393.03 million in the prior year.
Mr. Fiogome observed that the firm is conducting thorough community outreach in remote regions to boost income generation.
FanMilk's frozen yogurt and drinkable yogurt items reach customers through direct sales in over 10,000 retail locations including contemporary grocery stores, petrol stations' forecourts, drugstores, educational institutions, and local shops.
From bankruptcy to West Africa’s beloved
FanMilk began operations in 1960 under the name Ghana Milk Company with eight initial investors, focusing on producing pasteurized and fresh dairy items.
Nevertheless, the firm declared bankruptcy in 1962, two years later, due to a significant drop in sales.
This occurred because consuming fresh milk products was not common among Ghanaians, who instead favored purchasing sweetened condensed milk canned and predominantly imported from Holland. This preference led to significant financial losses and ultimately forced the Ghana Milk Company into declaring bankruptcy in 1962.
Nevertheless, an attentive staff member suggested a brilliant concept to expand into the manufacturing of chocolate milk and ice cream items, capitalizing on the distinctive bicycle vending approach. Consequently, this led to the creation of the well-known FANYOGO, FANICE, and FANCHOCO product lines.
In just 18 months, the firm's sales performance enhanced, and it slowly broadened its operations into Nigeria, Ivory Coast, Benin, Togo, and Burkina Faso.
FanMilk was among the initial members of the Ghana Stock Exchange and first listed in November 1990 when the stock market began operations.
Provided by Syndigate Media Inc. ( Syndigate.info ).
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