Stocks under review _ Fan Milk Limited (FML)

Fan Milk LTD previously known as Ghanaian Milk Company was incorporated in 1960 and was initially specialised in pasteurised milk. In 1962, the company changed its name to Fan Milk Limited and expanded their business model to the production of ice cream, yoghurt, ice lollies and many more products range; FanYogo, FanChoco, FanIce, FanDango and FanPop. The company in mainly into the Production of dairy products and fruit drinks.

The group has operating plants in Ghana, Ivory Coast, Togo and Nigeria and has sales and distribution companies in Liberia, Burkina Faso, and Benin.

Fan Milk Limited was the first foreign invested company in Ghana to become a Public Limited Liability in 1967 and among the first companies to be listed on the Ghana Stock Exchange on 18 October 1991 with more than 3250 shareholders. It is owned by a private equity firm called The Abraaj Group of Dubai and France’s Danone Group.

The shares of Fan Milk Limited is traded on Ghana Stock Exchange. As December 2009, the ten largest shareholders in Fan Milk Ltd are as follows:

RANK NAME OF OWNER        PERCENTAGE OWNERSHIP
1 Fan Milk International 56.64
2 SCGN/Hong Kong Shanghai Arisag Africa Consumer Fund Ltd 5.61
3 SCGN/SSB Llyod G. Inv Co. Fund – LYF3   2.68
4 Social Security and National Insurance Trust 1.59
5 SCGN/RBC Investor Services Re Coeli SICAV1- Frontler Market Fund   1.50
6 STD Noms/Bynym Lux/Eastspring Invest SICAV-FIS    1.15
7 SCGN/Pictet&Cie(Europe)S.A Lux Re Blakeney L.P   1.15
8 SCGN/SSB&T As Cust Re Aberdeen, Institutional Commingled Fd,Llc- AM43 1.03
9   SCGN/SSBTC Re Emrg Eq Trust Fundsmith Plc – FSAF  0.97
10 SCGN/Epack Investment Fund Limited Transaction EIFL 0.08

Fan Milk LTD began the year with a share price of GHS 4.12 but has since lost 57.52% off that price valuation, ranking it 40th on the GSE in terms of year to date performance. The group stock closed its last trading day (Friday, July 10, 2020) at GHS 1.75 per share on Ghana Stock Exchange with a price earning ratio of 8.95 as at July 10,2020.  The firm has not issued a dividend for the past one year.

On 28th April 2020, the group has published its financial statements with an increase in revenue from GHS 284,466,000 in 2018 to GHS 330,096,000 in 2019.hence 16% growth in revenue. However, the earning per share has dropped from 0.18 to 0.17 between 2018 and 2019. The sudden drop in the value of share price is now constituting a source of worry to shareholders up to date.

By Christelle Beatrice Halde

Tel. 020 465 5784

Email: cbkhalde@gmail.com

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