Listed manufacturing company Flame Tree Group Holdings has posted a strong financial turnaround for the year ended December 31, 2024, posting a net profit of KSh 201.8 million compared to a loss of KSh 74.6 million in 2023.
- •The Group also achieved a record EBITDA of KSh 618 million, representing a 47% increase year-on-year.
- •Despite operating in a difficult macroeconomic environment, severe floods, and regional instability, FTG demonstrated resilience.
- •Total income remained stable at KSh 4.463 billion, even as headline revenue dipped slightly.
The Group’s gross margin expanded by 4.5 percentage points to 39.2%, boosted by strong performance from the plastics division, which recorded 5.6% growth.
“FY2024 marked a true rebound for the Group. We returned to profitability, expanded our margins, and continued to invest in innovation and manufacturing capacity.”
Heril Bangera, CEO of FTG Holdings.
Key Financial Highlights:
| Metric | FY2024 | FY2023 | % Change |
|---|---|---|---|
| EBITDA | KSh 618M | KSh 421M | +47% |
| Net Profit/(Loss) | KSh 201.8M | (KSh 74.6M) | Positive turnaround |
| EBITDA Margin | 13.9% | 9.4% | Up |
| Net Profit Margin | 4.5% | Negative | Recovery |
| Interest Expense | KSh 382.4M | KSh 267.5M | +43% |
| Net Debt/EBITDA | 2.8x | 3.8x | Improved |
Operating profit rose to KSh 470 million in 2024 from KSh 278 million in 2023, driven by better cost management, a more diversified product mix, and enhanced operating efficiencies. However, finance costs surged by 43% to KSh 382.4 million due to high interest rates, which peaked at 21.7% during the year.
FTG’s debt profile showed marked improvement, with Net Debt/EBITDA falling to 2.8x from 3.8x the previous year, signaling stronger financial health.
Jojo Plastics in Kenya expanded its production capacity by 30% through strategic asset acquisitions. Mozambique’s Rino Tanques diversified its product range, while Ethiopia launched a new line of horizontal water tanks. Factory and marketing expenses were tightly managed, supporting profitability.
The Board of Flame Tree Group did not recommend payment of a dividend for FY2024. The Group’s 10th Annual General Meeting will be held virtually on June 27, 2025.
