NAIROBI, Kenya, Apr 28 – Flame Tree Group has reported an 86 percent jump in operating profit in its first full listed year from Sh139M in 2014 to Sh259M in 2015, with acquisitions lifting the group’s 2015 revenues by 29 percent.
The group’s FY 2015 acquisitions were in the cosmetics and snacks sub-sectors. The first acquisition since listing was Chirag Kenya’s food and snacks brands – Natures Own, Chigs, Honeycomb and Gonuts.
FTG operates in two verticals; manufacturing (of plastics, cosmetics and food) and trading. 2015 saw it make substantive capital investments in expanding its manufacturing capability and product lines which contributed to 75 percent of the total revenue. The group also made Sh61.3M in the disposal of property, plant and equipment.
“In the face of increasing competition and a tough economic environment, we have made considerable progress on our strategic plans to generate an 86 percent increase in our normalized operating profits. The acquisitions made in foods, snacks and cosmetics capped off FY 2015 really well for us,” said Flame Tree Group CEO, Heril Bangera.
The company also acquired three haircare brands from Beauty Plus Trading East Africa – Miss Africa, Black Angel and Beautyplus, and acquired Suzy Beauty for an undisclosed amount.
“We see more potential for innovation in our portfolio – particularly with our new Creative Director, Suzie Wokabi on board. Our customer’s needs and purchasing behaviors are changing and we’re focused on providing great African brands at a variety of affordable price points.”
The company reported a 37 percent increase in Eearnings Per Share to Sh1.36 having paid Sh122,983,160 in dividends in 2014.
“The addition of the new brands in FY 2015 doubled the size of the food portfolio, enabling cross-promotional opportunities for complementary brands and products. We’re really pleased with how the integration of the new brands has gone and we’re excited about the domestic food production category across the region,” added Bangera.
Flame Tree Group is listed under the Growth and Enterprise Market Segment (GEMS) on the Nairobi Securities Exchange (NSE) as NSE: FTGH.