Dannex Ayrton Starwin Public Limited Company (PLC) delivered a remarkable turnaround in the final quarter of 2025, posting full year net profit of GH¢14.3 million despite significant mid year challenges that had pushed the pharmaceutical manufacturer into loss territory.
The indigenous drugmaker achieved 37.6% profit growth for the year ended December 31, 2025, with net income climbing to GH¢14.3 million from GH¢10.4 million in 2024. This strong finish contrasts sharply with interim results that showed losses in the first half and minimal profits through September.
Revenue expanded 9.8% to GH¢190.2 million from GH¢173.1 million the previous year, demonstrating sustained market demand for the company’s pharmaceutical products across Ghana. Gross profit rose 8.5% to GH¢102.8 million from GH¢94.8 million, indicating improved pricing power and cost management.
Operating profit surged 52.1% to GH¢28.9 million compared with GH¢19.0 million in 2024, reflecting the company’s ability to leverage revenue growth into bottom line gains. This operating performance represents a substantial improvement over the GH¢3.8 million operating profit recorded at the nine month mark.
Earnings per share climbed 37.7% to GH¢0.1691 from GH¢0.1228, delivering enhanced returns to shareholders of the merged pharmaceutical enterprise. Diluted earnings per share matched this figure, maintaining consistency across capital structure calculations.
A key driver of profitability came from foreign exchange management, with the company recording an exchange gain of GH¢2.3 million in 2025 compared to a loss of GH¢868,560 in the prior year. This GH¢3.2 million swing significantly boosted operating margins and demonstrated effective currency risk management.
The company’s balance sheet expanded notably during 2025, with total assets growing 24.5% to GH¢125.5 million from GH¢100.8 million. This asset growth reflects continued investment in manufacturing capacity and working capital to support revenue expansion.
Shareholders’ equity strengthened dramatically, rising 53.5% to GH¢41.1 million from GH¢26.8 million in December 2024. Retained earnings swung positive to GH¢8.0 million from negative GH¢6.3 million, marking a fundamental shift in the company’s capital position and financial sustainability.
Inventories increased 30.5% to GH¢46.8 million from GH¢35.9 million, positioning the pharmaceutical manufacturer to meet anticipated demand. Trade and other receivables grew 20.7% to GH¢20.8 million from GH¢17.2 million, reflecting expanded credit sales to customers.
The company successfully reduced its debt burden during the year, with long term borrowing falling 58.5% to GH¢2.7 million from GH¢6.4 million. Short term borrowings also declined 27.8% to GH¢5.8 million from GH¢8.0 million, demonstrating improved debt management.
However, reliance on bank overdraft facilities increased substantially, rising 81.7% to GH¢18.7 million from GH¢10.3 million. This uptick in short term funding suggests the company utilized working capital facilities to finance inventory buildup and operational expansion.
Lease liabilities more than doubled to GH¢6.9 million from GH¢3.1 million, indicating new facility agreements or equipment leasing commitments supporting manufacturing operations. Cash and bank balances remained relatively stable at GH¢4.9 million compared with GH¢4.8 million in 2024.
Total liabilities rose 14.0% to GH¢84.4 million from GH¢74.1 million, growing at a slower pace than assets and allowing equity to expand. The company recorded an impairment loss on financial assets of GH¢1.2 million during 2025, not present in the prior year.
Dannex Ayrton Starwin operates as Ghana’s largest pharmaceutical manufacturer following the 2020 merger of Dannex Limited, established in 1964, Ayrton Drug Manufacturing Limited, incorporated in 1965, and Starwin Products Limited, formed in 1960. The company produces tablets, capsules, syrups, suspensions, creams, ointments, disinfectants and veterinary products.
The pharmaceutical firm maintains a nationwide distribution network serving over 2,000 active wholesale and retail customers with a workforce exceeding 600 employees. The company contributes 13% of basic salaries to the Social Security and National Insurance Trust (SSNIT) and provides a 6.5% employer contribution to its Provident Fund for employee benefits.
The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and audited on a going concern basis. The company trades on the Ghana Stock Exchange under ticker symbol DASPHARMA.
The remarkable fourth quarter recovery demonstrates management’s ability to navigate currency volatility and rising costs through operational adjustments, pricing strategies and market positioning. After recording mid year losses and minimal nine month profits, the strong finish positions the company favorably entering 2026.
