The National Food Buffer Stock Company Limited (NAFCO) recorded a significant improvement in its financial performance in 2025, with its gross profit margin increasing from 1.61% in 2024 to 13.96%.
The company’s Chief Executive Officer, George Abradu-Otoo, said the improvement was driven by stronger revenue growth and tighter cost management.
Speaking at the first Annual General Meeting of NAFCO’s shareholders, Mr Abradu-Otoo said the company recorded a net profit before tax of GH¢91.7 million in 2025, its highest profit since its establishment.
He said the profit reversed a GH¢19.4 million loss recorded in the previous year.
“The 2025 Net Profit Before Tax of GH 91.7 million, did not only erase a GHC 19.4 million loss posted the previous year, but it is the highest profit made by the company since its establishment in 2011. The Company’s gross profit margin surged from 1.61% in 2024 to 13.96% in 2025.Africans & Diaspora
“This reflects decisive cost discipline and robust revenue growth,” he said.
Mr Abradu-Otoo said NAFCO had recorded profits in several previous years, including 2018, 2019, 2020, 2022 and 2023, with the highest previously recorded profit being GH¢2.8 million in 2021.
He said the company’s return on operating assets also improved from negative 63.80% to a positive 26.29%, indicating an improvement in the deployment and management of its assets.
NAFCO also paid GH¢20.3 million in taxes to the state in 2025, which Mr Abradu-Otoo described as the highest annual tax contribution in the company’s 16-year history.
Despite the improved performance, he identified working capital management as one of the company’s key operational risks.
He said the company’s acid-test ratio remained marginal, although its liquidity was adequate, and called for measures to create a stronger buffer above 1.5 to reduce financial risk.
Mr Abradu-Otoo attributed the company’s improved performance partly to structural reforms in its corporate governance and operational systems.
He said the reforms included the establishment of a dedicated Procurement Department, strengthening of the Internal Audit and Food Safety departments, and the reconstitution of the Board and its sub-committees.
“The harmonious working relationship between the Board, Management and Staff proved equally decisive,” he said.
He said the company had also improved its regional operations, with all 16 regional offices now operational after the provision of vehicles, office equipment and additional staff.
National Food Reserve Programme
Mr Abradu-Otoo said NAFCO also revamped the National Food Reserve Programme in 2025 with an initial government funding of GH¢100 million.
He said the programme was introduced in response to a reported glut of grains, particularly rice and maize, in parts of the country.
According to him, by December 31, 2025, NAFCO had stocked 36,597 bags of maize, 21,287 bags of rice and 5,982 bags of gari in warehouses in Tamale, Badu, Kumbungu, Dzodze, Wenchi and Kumasi.
He said the programme required NAFCO to maintain food stocks that could be released when necessary, including during emergencies, disasters and periods of high food prices.
According to him, the programme was intended to help control inflation, reduce post-harvest losses and support the government’s agricultural interventions.
He said NAFCO worked with licensed buyers who purchased produce from local farmers and transported it to the company’s warehouses for cleaning and storage.
