Flame Tree Group Holdings, a listed manufacturer and distributor of plastic tanks, cosmetics, snacks, spices and playground equipment, saw its net earnings for the first six months of this year rise to KSh 66.9 Million.
The Group reported revenue in H1 2021 of KSh 1.6 Billion from KSh 1.2 Billion while the Balance Sheet size grew from KSh 2.5 Billion to KSh 2.6 Billion during the period under review.
Flame Tree Group profitability, as measured by earnings per share, improved marginally from KSh 0.31 in H1, 2020 to KSh 0.38 in H1, 2021
The Group’s priority has been to keep increasing sales in every business line and mitigate the sharp rise in international raw materials prices and logistic costs, which have impacted the margins severely.
The new machines purchased last year have enabled an increase in production and lower unit costs.
Flame Tree Group is still investing in strategic assets to diversify its product portfolio and cater to a higher demand for its products.
According to Heril Bangera, CEO of Flame Tree Group, the firm has continued to innovate and launch new products and packaging formats to the market in all three business lines: plastics, cosmetics, and snacks & spices.
He added that effects of the pandemic remain, with the firm suffering restricted access to markets and a surge in the price of raw materials, fuel and logistics.
Availability of US dollars in Rwanda and Ethiopia has been very scarce, affecting the purchase of raw materials for the firm’s factories.
However, Flame Tree has gained new clients and managed to increase sales across the business lines: Plastics(33%); Cosmetics:(16%); Snacks: (4% despite the loss of Tuskys Supermarkets) and Trade(93%)
Flame Tree Group is listed under the Growth and Enterprise Market Segment (GEMS) on the Nairobi Securities Exchange (NSE).
The Group, founded in 1989, has operations in Kenya, Rwanda, Ethiopia, Mauritius, Mozambique and the United Arab Emirates.
Flame Tree Group share performance
Flame Tree began 2021 with a share price of KSh 1.23 and has since gained 6.5% on that price valuation, ranking it 23rd on the NSE in terms of year-to-date performance.
FTGH closed yesterday, Thursday, August 26, 2021, at KSh 1.31 per share on the NSE, recording a 0.8% drop from its previous closing price of KSh 1.32.
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