FAN MILK Plc recorded a decline in its revenue for the 2020 financial year, merely posting a net profit of GH¢0.5 million.
Ziobeieton Yeo, Managing Director, Fan Milk Plc, who disclosed this in the audited financial statements of Fan Milk Plc for the year ended December 31, 2020, said “The year 2020 was exceptionally a very challenging year due to the COVID-19 pandemic. We could not build on the growth recorded in 2019. Instead, our company recorded a 12% decline in revenue and merely posted a net profit of GH¢0.5 million.”
According to Mr. Yeo, the company has in spite of the foregoing made a lot of inroads in the midst of the pandemic, adding “We are poised to deploy various strategies to make 2021 a better year, in spite of the prevalence of the COVID-19 pandemic.”
Describing the financial results as unimpressive, compared to its 2019 performance, Mr. Yeo said revenue declined 12 per cent from GH¢424.5 million in 2019 to GH¢373.6 million in 2020. “This was due to the COVID-19 pandemic which severely impacted our outdoor channel.
“Profit-before-tax dropped from GH¢38.7 million in 2019 to GH¢0.8 million in 2020. Profit-after-tax was GH¢0.5 million compared to GH¢25.0 million 2019,” he added.
He continued that cash and cash equivalents increased from GH¢39.0 million in 2019 to GH¢54.0 million in 2020.
“Fan Milk Plc continues to prioritise our investment in building efficient process equipment as a critical means to meet our customers and consumers’ needs, thus delivering our ambitious growth agenda. Investment of more than GH¢22.8 million was undertaken within the year under review. Areas invested included: Industrial, Supply Chain, Sales and Administration & Information System Support.”
The price of the company’s shares did not do well on the Ghana Stock Exchange in 2020. It fell by 73.8% from GH¢4.12 in January 2019 to GH¢1.08 per share by December 31, 2020.
Investment In COVID-19 Support
During the fiscal year, a total of GH¢202,000 was invested in support of the COVID-19 relief efforts. This covers interventions relating to the supply of personal protective equipment (PPE) and company products to front line workers.
The directors did not recommend payment of a dividend for the year ended December 31, 2020.
Fan Milk International A/S, incorporated in Denmark, is the majority shareholder of Fan Milk Plc with 62.10% shareholding. Fan Milk International A/S is a wholly-owned subsidiary of Danone S.A. since July 30, 2019, when Danone S.A. directly increased its stake in Fan Milk International A/S from 51% to 100%.
A Business Desk Report