Flame Tree Group Holdings (FTGH: NSE) the diversified manufacturer and distributor of plastic tanks, cosmetics and snacks has announced its financial performance for Full year 2016.
The Group reported growth in its annual net sales for 2016 of 11.5% to Sh 2.5 billion, compared to net sales of Sh 2.3 billion in 2015. Profit after tax declined by 19% year on year to Sh 114.98 million, while profit before tax fell by 11% to Sh 175.97 Million.
FTGH said the decline in earnings was impacted by a “significant provision against receivables from supermarkets in Kenya that have been extremely slow to pay.”
Operating profit declined to Sh 237.8 million, compared to Sh 259.0 million in 2015. The decline was largely as a result of a 22.3% increase in operating costs toSh 671.8 million.
“Selling and distribution expenses faced one – off impact from Suzie beauty retail chain expansion as well as new Mozambique factory expenses in the period. Management anticipates the Group’s investments in the acquired brands and continued development of a strong retail presence to bear positively on revenues and Group profitability in the longer term.” The GEMS listed company noted.
Bonus Issue
The company has recommended a bonus issue in the ratio of 1:10 subject to shareholder approval at the forthcoming Annual General Meeting (Date to be announced later).
FTGH Bonus Issue Timetable
| Activity | Date |
| Record Date | 06/29/17 |
| Shares Credited to CDS accounts | 08/21/17 |
| Commencement of Trading | 08/22/17 |
