Manufacturing Firms Post Mixed Results In 2017

Mixed results characterized manufacturing firms’ performance in 2017 though some recorded appreciable incomes last year following stable electricity and an improved macroeconomic environment.

According to unaudited results released by some manufacturing firms listed on the Ghana Stock Exchange (GSE), there are immense prospects this year following a reduction in their operational costs, largely from stable power and a relatively stable exchange rate.

Unilever, Fan Milk, Guinness Ghana Breweries Limited and Nestle amongst others all made good earnings in the year 2017.

Though its profit drop, ice cream manufacturer Fan Milk posted a profit of GH¢47 million in 2017 as against GH¢66.1 million in 2016.

Revenue for the period also shot up by 15.4 percent, from GH¢386.4 million a year before to GH¢445.9 million in 2017.

Total equity and liability stood at GH¢296 million in 2017 as against GH¢245 million in 2016.

For Unilever, Pretax earnings grew by 31.0 percent to GHc70.12 million while post tax earnings rose by 32.6 percent to GHc51.77 million in 2017.

It also achieved significant improvement in operating efficiency, buoyed by the relative stability of the local currency that aided management's ability to keep a tight lid on operating expenses, which rose by just 2.2 percent year-on-year to GHc96.49 million in 2017. Earnings per share for 2017 stood at 8.2 pesewas compared with 6.2 pesewas in 2016.

Pharmaceutical manufacturer, Ayrton Drugs made a modest profit of GH¢976,181 in 2017 as against a profit of GH¢2.1 million in 2016.
Its cost of sales reduced from GH¢8.4 million last year to GH¢7.9 million in 2016. However, its revenue was almost unchanged at GH¢17 million, affecting the ability to make more profit.
It did not register any earnings on its shares.

Brewery giant, Guinness Ghana Brewery Limited made another loss of GH¢4.6 million in 2017 though a reduction from the 2016 loss. It cost of sales shot up from GH¢217 million in 2016 to GH¢240 million in 2017, due to selling, general and administrative expenses.
However, it balance sheet remained strong.

Security paper production firm, Camelot, however reported a profit of GH¢288,333 in 2017, compared with GH¢224,492 in 2016. Total turnover was higher but cost of sales was also higher. Its balance sheet however remained strong.

According to the Ghana Statistical Service, the manufacturing sector recorded a growth rate of 5.2 percent in the third quarter of 2017 compared with 6.4 percent during the second quarter of 2017.

The manufacturing sector size of the economy is worth GH¢671 million.