- Flame Tree Group showed a significant recovery in H1 2023, returning to profit after losses in 2022 due to increased raw material costs.
- They reported a rise in sales by 18% compared to H1 2022, and an increase in gross margin from 27% to 34%.
- The EBITDA has improved by 71% to 201.3 M.
- However, increased finance costs related to heightened working capital funding, higher interest rates, and depreciation of local currencies against the USD have negatively influenced net profit.
- Even with this, the company displayed better performance in 2023 than the prior year, with a profit of 6.8M compared to a loss of 44.7M in H1 2022.
- Overheads have risen by 17% due to increased depreciation costs, factory expenses, logistic costs, and sales & marketing expenses.
- The company’s Financial ratios show positive improvement and the Net Debt EBITDA has reduced considerably from x15.9 FY2022 to x6.5.
- Working capital management has greatly improved by 35 days, and short-term borrowings have dropped by 45%.
- New products were launched, contributing to the company’s growth.
- The company sees a promising future in making continuous efforts to innovate and deliver high-quality products to its customers.
About Flame Tree Group Holdings Limited (FTGH.ke)
Flame Tree Group Holdings Limited manufactures and sells a range of beauty care products in Kenya which includes creams, nail polishes, lotions and moisturizers. The company also has operations in Mauritius, Rwanda, Ethiopia, Dubai and Mozambique. Flame Tree Group Holdings Limited also manufactures plastic products for bulk water storage which includes Roto Tanks and Jojo Plastics. The company is a subsidiary of FTG Holdings Limited and its head office is in Nairobi, Kenya. Flame Tree Group Holdings Limited
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