Fan Milk Ghana, a subsidiary of Danone, saw its net profit after tax drop 97.6% in 2020 to 600,000 Ghanaian cedis (€ 85,337). While the company, which produces frozen yogurts, ice creams, snacks and citrus drinks, saw sales improve in the last quarter of 2020, revenue is down 12% to 373.58 million Ghanaian cedis. in 2020. For Fan Milk, the Covid-19 pandemic strongly affected sales in the first half of the year by reducing the movement of people, in particular those of salespeople who use bicycles to penetrate communities and local markets .
The parent company had announced last week a turnover down 1.5% to € 23.62 billion and an operating profit of € 3.3 billion, down 13.8%. Results impacted by the Covid-19 pandemic, in particular the specialized nutrition and water divisions, water sales having decreased by 16.8% in 2020.
The Danone group and its CEO Emmanuel Faber are also under pressure from two shareholders, the management company Artisan Partners and the activist fund Bluebell Capital, who are challenging the management and the strategy. The two investors are demanding in particular the separation of the functions of chairman and managing director. In addition, the group launched last November a new organization by geographic areas and no longer by product categories, an organization which should result in the elimination of 1,500 to 2,000 jobs (Read: Danone: doing “local” with a single zone Asia / Africa / Middle East and at its head Corine Tap, 100% Asia).
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