FML EARNINGS COMMENTARY
Huge climb in revenue
Turnover doubles in FY’09: FML recorded 49.84% growth in revenue comparable last
year. Total revenue appreciated to GH¢82,471 million in FY’09 from GH¢55,041
million FY’08 due to increase in production and subsequent widening of
distribution network. Cash accumulated from investment surge to GH¢15,871
million in FY’09 from GH¢8,834 million FY’08, representing an upward adjustment
of 79.66%. Interest gained from investment also shot up by 74.90% as against last year.
Production cost down: Cost of sale ratio decline to 44.77% in FY’09 from 52.35% in
FY’08. Interest payment also drop to GH¢17 million in FY’09 from GH¢113 million
same period last year indicating 84.96% down. This is hugely linked to the
recent macroeconomic stability in line with the downturn of interest rates.
Operating expense ratio also contributed 32.19% just a marginal increase of
0.68% over the previous year on the face of increased production. This is
purely due to strict and tactical managerial structures laid down.
Bottom-line improved significantly: Profit after tax witnessed a significant increase to GH¢15,156 million in FY’09
from GH¢7,054 million in FY’08 being a reflection from revenue surge amid low interest.
Total surge jumped to 18.38% in FY’09 from 12.82% the previous year in line
with the falling interest rates. Earnings per share also went up by 113.89% in
FY’09 from GH¢0.36 the previous year.
Company profile
Fan milk Limited is the leading manufacturer of Ice Cream and Yoghurt in Ghana. The company deals in fruit drinks and Ice Lollies as the main product line. This includes FanIce, FanYogo, FanChoco, Tampico, Fangold and FanPop. Fan Milk currently enjoys the widest distribution network among the manufacturing industry in Ghana. Fan Milk International has an equity stake of 55.45% in Fan Milk Ghana.
