Brief
Flame Tree Group announced its results for their Full Year ending 31st December earlier today (27th April) and we have to say they posted strong results amidst a tough environment in 2015.
Flame Tree Group operates in two verticals, manufacturing (of plastics; cosmetics; and food) and trading. Flame Tree Group is listed on Nairobi Securities Exchange under the Growth Enterprise Segment (GEMS). It was listed in October 2014.
Flame Tree Group operates in six countries: Mauritius, Kenya, Rwanda, Ethiopia, Dubai and Mozambique.
Deals
Flame Tree made a number of acquisitions in FY15 these include:
1. Chirag Kenya’s food and snacks brands – Natures Own, Chigs, Honeycomb and Gonuts.
2. Hair Care Brands from Beauty Plus Trading East Africa i.e. Miss Africa, Black Angel and Beautyplus
Heril Bangera the Group CEO mentioned that ‘the addition of the new brands doubled the size of the food portfolio, enabling cross-promotional opportunities for complementary brands and products.’
FY 2015 Results
Revenues increased by 29.4% in 2015 standing at KES 2.283 Billion vs KES 1.765 Billion reported in 2014. Manufacturing contributed to 75% of the total revenue.
Operating Profits surged by 85% from KES 139.4 Million in 2014 to KES 259 Million.
Finance costs went up 12% to stand at KES 62.7 Million.
Profit before tax went up by 37% to KES 198.4 Million compared to KES 144.8 Million in 2014.
Share Price
Flame Tree Group closed at 7.55, 32.46% above the 52 week low of 5.70 set on Oct 30, 2015. Have a look at the 1 Year Share price chart below:
Future Prospects
The Group CEO expects that, ‘in 2016, our focus will be on investing in our brands and building the foundation for accelerated growth in 2017. We see more potential for innovation in our portfolio – particularly with our new Creative Director, Suzie Wokabi on board. Our customers’ needs and purchasing behaviors are changing and we’re focused on providing great African brands at a variety of affordable price points.’
Download: FTG2015 Results.pdf
Source: Financial Times, Flame Tree Group
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