Flame tree group, the producer of household items like; plastic tanks, cosmetics, and playground equipment, booked KSh5.9 million drop in net profits in 2018, equivalent to a 15 per cent decline. Its pretax earnings increased by 2 per cent mainly supported by total revenue growth of 2.6 per cent and 6.4 per cent drop in expenses. The firm’s revenues jumped to KSh2.48 billion from 2.42billion booked in 2017.
The listed manufacturer experienced a sharp increase in tax charges from KSh1.7 million to KSh8.3 million which led to the huge decrease in net earnings.
Flame tree managed to improve its sales strategy and increase efficiency in its operations in 2018 which led to better sales results. The company registered higher sales from all its revenue streams. Its primary market, Kenya, booked 16 percent growth. “The results of FTGH show a positive evolution compared to FY 2017 as it outperformed its peers in NSE. Our business lines contributed greatly to our overall performance with reported growth in all verticals….” said the firm’s CEO Mr. Heril Bangera.
The company expects higher sales revenues in 2019. It aims to grow its sales in Kenya and in the regional markets like Ethiopia, Rwanda, and Mozambique. The manufacturer also plans to expand to other African markets especially in its cosmetics business.
Flame tree shareholders will not receive a dividend for the year 2018 after its directors failed to recommend the payout.
