The National Food Buffer Stock Company (NAFCO) is seeking to strengthen its liquidity position and improve its financial resilience after recording a profit before tax of GH¢91.7 million in 2025.
The company’s Chief Executive Officer (CEO), Mr George Abradu-Otoo, said although NAFCO’s liquidity position remained adequate, its short-term financial buffer required further strengthening to reduce financial risks.
Speaking at the company’s maiden Annual General Meeting (AGM), where he reviewed NAFCO’s 2025 financial performance, Mr Abradu-Otoo said the company was targeting an acid-test ratio of above 1.5 to improve its capacity to meet short-term financial obligations.
“Despite these significant gains, there are concerns that require the attention of Government, as the majority shareholder,” he said.
He noted that NAFCO’s acid-test ratio, which measures the company’s ability to meet short-term liabilities using its most liquid assets, excluding inventory, improved from 1.07 in 2024 to 1.18 in 2025.
“Secondly, while the Company’s liquidity position remains adequate, the Acid-Test Ratio of 1.18 in 2025, compared with 1.07 in 2024, remains marginal,” he said.
Mr Abradu-Otoo identified working capital management as another key area requiring attention to ensure the company’s long-term financial sustainability.
Strong financial turnaround
NAFCO’s profit before tax of GH¢91.7 million in 2025 represented a significant turnaround from the GH¢19.4 million loss recorded in 2024.
According to the CEO, the 2025 performance was the highest profit recorded by the company since its establishment 16 years ago.
“The 2025 Net Profit Before Tax of GH¢91.7 million represents a remarkable turnaround. It not only erased the GH¢19.4 million loss recorded in the previous year, but also represents the highest profit made by the Company since its establishment,” he said.
The company’s gross profit margin also rose sharply from 1.61 per cent in 2024 to 13.96 per cent in 2025.
Its return on operating assets improved from negative 63.80 per cent in 2024 to a positive 26.29 per cent in 2025.
NAFCO further paid GH¢20.3 million in taxes to the State during the year, its highest annual tax contribution to date.
Reforms drive performance
Mr Abradu-Otoo attributed the improved financial performance to a series of structural and institutional reforms undertaken by the company.
These included the establishment of a dedicated Procurement Department, strengthening of the Internal Audit Department and improvements in the Food Safety Department.
He also cited the reconstitution of the Board of Directors and its sub-committees, as well as stronger collaboration among the Board, Management and staff, as factors that contributed to the company’s improved performance.
“The year 2025 was a turning point,” he said.
According to him, the reforms had also contributed to improved payments to suppliers and strengthened NAFCO’s operations across the regions.
Sustaining the gains
Despite the improved financial results, the CEO said maintaining the momentum would require continued operational discipline, sound corporate governance and a stronger financial foundation.
He said NAFCO would continue to improve its financial and operational management to sustain growth while fulfilling its mandate of supporting Ghana’s food security.
NAFCO is responsible for purchasing and storing food commodities, supporting local farmers and maintaining strategic food reserves to help cushion the country during emergencies and periods of high food prices.
The company also supplies food to about 733 second-cycle institutions under the Free Senior High School (Free SHS) programme.
Mr Abradu-Otoo said the company remained committed to strengthening its operations and financial position to effectively deliver on its national food-security mandate.
