Fan Milk Ghana Rises to 1-Year High on Profit Hope: Accra Mover

Fan Milk Ltd. (FML), a maker of food and beverage products in Ghana, rose to the highest in a year as speculation profit will increase in the third quarter.

The stock gained 4.2 percent to 2.74 cedis as of 2:08 p.m. in the capital, Accra, the highest since Sept. 2, 2011.

“We expect demand for the company’s products to gain from political campaigns and rallies, which will become more prominent from this month forth,” Xorlali Torsu, a stock trader at Databank Financial Services Ltd. in Accra, said by phone today. “We are expecting profit growth of about 31 percent for Fan Milk for the nine months ending this month.”

Ghana holds presidential and parliamentary elections in December. Parties will contest to fill the 230-member parliament while president John Dramani Mahama will seek to win a second term for the ruling National Democratic Congress against opposition New Patriotic Party candidate, Nana Akufo-Addo.

The NPP started its campaign activities on Aug. 29 while the NDC began theirs the next day.

Fan Milk’s net income increased 31 percent to 13.1 million cedis ($6.8 million) in the first half through June 30. Revenue in the six months climbed to 73.3 million cedis from 52.1 million cedis a year earlier.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net

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