Flame Tree Group (FTG) Holdings has announced a 64% increase in pre-tax profit up to KES148.4 million ($1.4 million) for the 2020 Financial year, from KES90.5 million ($900,000 USD) posted the previous year.
FTG Holdings is the diversified manufacturer and distributor of plastic tanks, cosmetics, snacks, spices and playground equipment.
According to the Nairobi Securities Exchange (NSE) listed firm, all profit ratios showed major improvements.
In a press statement issued on Thursday, April 15, the firm noted that sales increased by 20% and the gross margin grew by 39% from 34 p.p. to 39 p.p.
The company was able to cut down costs and achieve savings in all areas, following the implementation of a cost-saving plan.
However, there was an increase in depreciation costs (due to new equipment and asset revaluation from previous year), debt impairment, and finance costs (impacted by the devaluation of the Kenyan Shilling) in FY2020.
All this enabled the company to achieve an outstanding improvement of +101% in EBITDA vs LY, up to 393.4 million.
According to Flame Tree Group CEO Mr. Heril Ban, the company is satisfied with the results achieved despite all challenges in the most difficult year amid the global pandemic.
“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 19 and continue to show a remarkable growth for the third year in a row,” he said.
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The company is also showing a strong and healthy financial position, with improvement in Net Debt/EBITDA ratio, now down to x1.7 (LY was x2.7).
“Our receivables have been kept under tight control, and despite the impairment of some receivables – mainly related to Tuskys Supermarket – the DSO ratio improved by 4 days,” said Mr. Bangera.
Net assets of the company showed an accumulated growth in the last 3 years of 33.4%.
Business Outlook
The company notes that it remains committed to its vision of Creating World-Class African Brands for its customers in the countries where it currently operates 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,” said the company in the press statement.
The company shows healthy financial ratios, and it believes the performance in the last 3 years will give
confidence to their stakeholders and investors.
The company listed partial or total lockdowns, delays in logistics, an increase in raw material costs, and the devaluation of the KES as some of the challenges being experienced during the Covid-19 pandemic.
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However, the company said it will continue to strategize towards compensating all negative impacts as it keeps working to achieve higher levels of efficiency in all areas and to gain new customers and diversify its product
portfolio.
Dividend
The board of directors does not recommend the payment of a dividend for the year ended 31 Dec 2020.
Annual General Meeting
The 7th Annual General Meeting of the members will be held on 30th June 2021 at 11 am in Nairobi via
Virtual Media as mandated by the CMA.
