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FLAME Tree posts Sh148.4mn for FY2020

NAIROBI, Kenya, Apr 17- Flame Tree Group Holdings, the diversified manufacturer and distributor of plastic tanks, cosmetics, snacks, spices, and playground equipment, has announced a 64 percent increase in pre-tax profit up to Sh148.4 million for the FY 2020 from Sh90.5 million posted the previous year.

The Nairobi Securities Exchange (NSE) Listed firm through a statement said its sales increased by 20 percent and gross margin grew by 39percent.

The company was able to cut down costs, following the implementation of a cost-saving plan; however, there was an increase in depreciation costs (due to new equipment and asset revaluation from the previous year), debt impairment, and finance costs (impacted by the devaluation of the Kenyan Shilling) in FY2020.

According to, CEO Flame Tree Group Heril Bangera , “We are very satisfied with the results achieved this year, despite all challenges in the most difficult year amid the global pandemic, the company has reacted fast to preserve its cash, protect employment, seize every commercial opportunity, even launching new products designed to fight the Covid 19and continue to show a remarkable growth for the third year in a row”.

FTGH has said it will remain committed to its vision of Creating World-Class African Brands for its customers in the countries where they currently operate and beyond.

“We shall continue to grow our business lines and strive to be market leaders in the plastics segment. The company has already done significant investments in plastic packaging machinery and equipment, as we gear up to grow our production capacity,” reads the firm’s statement.

The board of directors however did not recommend the payment of a dividend for the year ended 31 Dec 2020.

 

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