Fan Milk PLC has re-invested over GH¢47million to ensure the business’ viability and sustainability in the coming years.
According to the Managing Director of the company, Ziobeieton Yeo, the organisation is ensuring that it is investing in efficient processes and facilities which will enable it to meet customers and consumers’ needs.
“The company is ensuring that it is investing in efficient processes and facilities which will propel it to meet customers and consumers’ needs, thus, delivering our ambitious growth agenda.
“In line with this, an investment of GH¢47.19million was undertaken within the year under review. Areas invested included: industrial, supply chain, sales and administration, and information system support.
“Investing GH¢47million back into business so that it is secured for the future is a bold and a right decision, especially when you come out of COVID-19 where you see that there are challenges. Recovering and resetting the business is how I will summarise Fan Milk’s year,” he said at the company’s 61st Annual General Meeting organised in Accra.
25.3 percent growth in revenue
The company also had a growth in revenue of 25.3 percent compared to the previous year.
“Fan Milk posted a growth in revenue of 25.3 percent compared to the previous year. This growth came from recovery of its outdoor business, and increase in export business to affiliated companies.
“Within the year under review, higher material prices dipped the gross profit margin from almost 32 percent in 2020 to 26 percent in 2021… Profit before tax dropped from almost GH¢0.8m in 2020 to a loss of GH¢20.87m in 2021. The year recorded a net loss of GH¢13.4million compared to profit after tax of GH¢0.5m in 2020. Cash and cash equivalent increased from GH¢54million in 2020 to GH¢65.6million in 2021.
“2021, for me, has been a good year, recovering the business and growing 25 percent by many standards, is good but what really gives me the joy is the quality of the delivery,” he added, describing the year under review.
He, therefore, assured consumers of his outfit’s commitment to maintain the quality of products regardless of any difficulty the business might face due to the current economic challenges.
“I want to assure Ghana that we will not touch the quality of our products. It is not appropriate to dilute things that have to do with health and environment in the name of economic crisis,” he said.
For his part, the Board Chairman of Fan Milk, Dr. Charles Mensa, is optimistic about the company bouncing back after a growth in revenue of 25.3 percent for the 2021 financial year.
“Our very creative ways have brought us to this point. We have overcome COVID-19, we have survived it. We grew 25 percent and we are back. The future is optimistic and we are more hopeful,” he said.
Fan Milk is optimistic of paying dividend in due course after the negative impact of COVID-19 on the business.