This archive report was first published on 27 August 2019.
Published on August 27, 2019, Flame Tree Holdings released their half-year results, revealing a significant decline in pretax profits.
The firm's revenues reached KSh1.255 billion in the six-month period, but their pretax profits plummeted by 82% to KSh9.6 million from KSh54.9 million in the first half of 2018.
The company attributed the weak performance to a sharp increase in operating costs and unfavorable conditions in Ethiopia and Mozambique.
Despite this, Flame Tree's plastic line saw a 13% increase in sales, with an 8% rise in gross profit to KSh293.5 million compared to the previous year.
However, the snack line sales declined by 15% due to the drought experienced in the country, resulting in potato scarcity and price increases that affected production and margins.
The cosmetics line, on the other hand, reported an 11% growth in sales, with a 9% increase in gross profit.
