Flame Tree Group Holdings(FTGH), a diversified manufacturer and distributor of plastic tanks, cosmetics, snacks, spices and playground equipment, has announced a 36.4% increase in net profit to KSh 102.5 Million for the FY 2021 from KSh75.1 Million posted in 2020.
While the firm’s revenue increased by 16.2% in 2021 and sales by 20%, its gross margin dropped due to a sharp increase in international oil prices and shipping costs, which affected the cost of raw materials.
Overheads increased by 5.4% to KSh 44.7 million, as the firm reactivated its sales & marketing activities after lockdowns in 2020.
Flame Tree Group was able to cut down costs and achieve savings in other areas, including debt impairment and relative finance costs.
All this enabled the company to achieve a remarkable improvement of 36.4% in net profit, after the 67% increase reported in 2020.
Heril Bangera, CEO Flame Tree Group said that after a very challenging second year of the global pandemic that led to high crude oil and shipping costs, there was remarkable growth for the fourth year in a row as well as a strong and healthy financial position.
While the conflict between Russia and Ukraine escalates, Flame Tree Group says it will diversify its suppliers of raw materials, especially polymers, from different regions in the world, to be able to mitigate the impact of any price increase.
Flame Tree Group Board of Directors has not recommended payment of a dividend for the year ended 31 Dec 2021.
The Group will hold its 8th Annual General Meeting(AGM) on 7th July 2022 at 11 am in Nairobi via virtual media.
ALSO READ: Flame Tree Group Half-Year Net Profit rises 21% to KSh 66.9 Million
