Kasapreko PLC, Ghana’s largest indigenous beverage company, delivered extraordinary financial performance in the first nine months of 2025, with net profit surging 265% to GHS 258.8 million as the company prepares for its highly anticipated listing on the Ghana Stock Exchange by year end.
The unaudited financial statements for the period ended September 30, 2025, show revenue climbed 38.7% to GHS 2.56 billion from GHS 1.85 billion the previous year, driven by strong market demand and successful commercial strategies. However, the real story lies in the dramatic margin expansion that translated robust top-line growth into an explosion of bottom-line profitability.
Net profit margin more than doubled from 3.8% to 10.1%, while operating profit nearly doubled to GHS 432.4 million from GHS 221.8 million, representing a 95% increase. Operating profit margin expanded from 12% to 16.9%, demonstrating powerful operational leverage as the company managed costs effectively despite rapid growth.
The profitability transformation was driven by a 3 percentage point expansion in gross profit margin to 30.9%, indicating Kasapreko benefited from lower costs of imported raw materials and better pricing power. Gross profit surged 53.8% to GHS 790.4 million, growing faster than the revenue increase and providing the fuel for the record earnings.
Operating expenses rose 22.6% to GHS 358 million, but this growth rate lagged far behind the 53.8% surge in gross profit, showcasing the company’s ability to leverage its fixed cost base. Finance costs fell 12.5% to GHS 115.5 million, reflecting strategic debt reduction that further boosted net earnings.
The balance sheet strengthened dramatically during the period. Total equity more than doubled to GHS 605.1 million from GHS 279.4 million at the end of 2024, directly fueled by the massive retained profits. At the same time, total liabilities decreased by GHS 104.5 million to GHS 1.17 billion, indicating aggressive debt paydown.
Cash and equivalents jumped 57% to GHS 185.9 million from GHS 118.4 million, providing a much stronger liquidity cushion. Current assets grew to GHS 1.01 billion from GHS 804 million, while inventory levels increased to GHS 504.7 million from GHS 450 million, possibly reflecting strategic buildup to support continued growth.
The company generated GHS 307.8 million in cash from operating activities, consistent with the high profitability shown in the income statement. However, Kasapreko nearly doubled its investment spending to GHS 101.4 million, reflecting significant capital expenditure on property, plant, and equipment to support future expansion.
Cash used in financing activities totaled GHS 183.4 million, primarily from net repayment of borrowings. This aggressive debt reduction aligns with the decreased liabilities on the balance sheet and explains the lower finance costs that contributed to the profit surge.
The stellar results come as Kasapreko prepares for what will be Ghana’s first major initial public offering since MTN Ghana’s 2018 debut. Chief Executive Officer Richard Adjei announced in May 2025 that the company plans to list 25% of its equity shares on the main market of the Ghana Stock Exchange by year end, with board approval already secured.
First quarter 2025 performance showed equally impressive momentum, with a 52% increase in revenue and 184% surge in profit after tax, attributed to higher product volumes and effective cost controls. Full year 2024 results were transformational, with revenue hitting GHS 2.7 billion (up 45% year-on-year), while profit after tax recorded a remarkable 574% growth driven by expanded market reach and increased sales volumes.
Kasapreko currently ranks number one in the spirits category in Ghana and remains within the top three in both the bottled water and soft drink categories, controlling nearly 45% of Ghana’s beverage market. The company exports to 16 African countries and has been aggressively expanding into Nigeria and other regional markets.
Ghana’s alcoholic drinks industry recorded growth across both volume and value metrics in 2024 despite turbulent economic conditions, with an average inflation rate of 20% and the cedi depreciating over 20% against the US dollar. Currency fluctuations contributed to price increases of between 25% and 30% for many alcoholic products, yet overall demand proved resilient.
Known for flagship products including Alomo Bitters, Cardinal Beer, Storm Energy Drink, and various spirits and soft drinks, Kasapreko has leveraged research and development, incorporating cutting-edge technology with local and traditional recipes. The company operates a state-of-the-art ISO 22000:2005 certified production facility in Nungua, a suburb of Accra.
Industry experts project non-alcoholic drinks revenues to grow at an average of 15% annually in the medium term, while alcoholic beverages revenues are expected to increase at 13% annually until 2026. Ghana’s consumption of alcoholic drinks is projected to reach 54,000 metric tons by 2028, up from 43,000 metric tons in 2023, marking an average annual growth rate of 3.7%.
Ghana Stock Exchange Managing Director Abena Amoah has commended Kasapreko’s trajectory, emphasizing that the company’s expansion and performance demonstrate the kind of indigenous success stories that contribute significantly to national economic growth.
The upcoming equity listing follows a GHS 350 million landmark capital raise in 2024 when Kasapreko entered the fixed income market, raising funds through corporate bonds. The company has described this as a transformational period that helped shape the business as it appears today.
With the nine-month results showing continued acceleration beyond the already impressive first quarter and full year 2024 performance, Kasapreko appears well positioned for its stock market debut. The company has successfully shifted from a moderate-profit to a high-profit business, using soaring earnings to strengthen its balance sheet, reduce financial risk, and invest heavily for future growth.
Potential risks include sustaining the current margin levels, which benefited partly from favorable raw material costs, and managing the inventory buildup to avoid obsolescence or excessive working capital tie-up. The performance also remains linked to continued consumer demand and stable macroeconomic conditions in Ghana.
However, by strategically deploying record profits to reinvest in the business while paying down debt, Kasapreko has positioned itself with a much stronger and more resilient financial foundation. The transformation represents one of the most impressive turnarounds among publicly disclosed Ghanaian companies in 2025, setting high expectations for the upcoming IPO.