Kenyan listed manufacturing group Flame Tree Group Holdings recorded a profit of KSh 44.94 Million at the close of the financial year ended 31st December 2019. This is compared to KSh 33.8 Million in the same period the previous year. Its pre-tax profit rose to KSh 590.5 Million from KSh 542 Million posted the previous period.
Release of its financial results yesterday boosted trading of the firm’s stocks at the Nairobi bourse, where a volume of 1,214,700 shares were traded. Its share price, however, fell by 9.5% to 95 cents. Flame Tree Group is a manufacturer and distributor of plastic tanks, cosmetics, snacks, spices and playground equipment.
The Group is listed under the Growth and Enterprise Market Segment(GEMS). The Group has operations in Kenya, Rwanda, Ethiopia, Mauritius, Mozambique and United Arab Emirates(UAE)
According to Mr Heril Bangera, CEO Flame Tree Group, “The significant investments are done in fixed assets of industrial machinery, vehicles and a new factory in Ethiopia led to increased use of funding facilities which translated to a 15.4 per cent increase in finance costs. However, our net debt EBITDA ratio remained low.”
Flame Tree has experienced positive short term effects of COVID-19 pandemic, including an increase in sales of hand-washing stations, hand sanitizers and fall in the price of plastic of raw materials due to a drop in fuel prices.
The firm will be holding its Annual General Meeting(AGM)on 19th June 2020 at 11.00 virtually. Directors have not recommended payment of any dividends to the firm’s shareholders.
In its outlook, the Group plans to expand its network outside Kenya, through its subsidiaries by increasing sales to other markets, especially its cosmetics.
The balance sheet size of Flame Tree Group expanded to KSh 2.3 billion in 2019 from KSh 1.8 billion the previous year. Revenues, however, fell from KSh 2.5 billion to KSh 2.4 billion. The Group said its decrease in sales of 2.6% was caused by disruption as a result of moving into its own new factory site in Ethiopia.
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