Diversified manufacturer and trading firm Flame Tree Group made a net profit of Sh201.8 million in the year ended December 2024, helped by a tax credit and a one-off special income whose details was not disclosed.
The company, which produces and distributes plastics, cosmetics and spices among other goods, had posted a net loss of Sh74.6 million in the prior year. In the review period, Flame Tree disclosed a tax benefit of Sh74 million and “other operating income” of Sh293.5 million which was absent in the year before.
These drove the Nairobi Securities Exchange-listed firm back to profitability, overcoming a drop in sales to Sh4.1 billion from Sh4.4 billion.
“Full year 2024 marked a true rebound for the group,” Flame Tree’s Chief Executive Officer Heril Bangera said in a statement.
“We returned to profitability, expanded our margins, and continued to invest in innovation.”
Despite the return to profitability, the company did not declare a dividend, maintaining its multi-year payout freeze.
Flame Tree’s earnings growth stands in contrast with other listed manufacturers including BAT Kenya and Carbacid Investments, whose profit took a hit from a stronger shilling last year. The firm sells its products locally and in the regional market including Rwanda and Mozambique.
BAT and Carbacid reported net profit declines of 19 percent and 10 percent in their latest full and half year results respectively, mainly due to lower earnings from sales in regional markets.
BAT said that the stronger shilling resulted in finance costs of Sh829 million in the year to December 2024, reversing a gain or finance income of Sh97 million a year earlier. This saw its net profit for the year drop by 19 percent to Sh4.4 billion in 2024, from Sh5.5 billion the previous year.
Carbacid’s net profit for the half year to January 2025 fell by 10.3 percent to Sh434.9 million as sales declined 12.9 percent to Sh940.6 million, attributed to the impact of the shilling on regional sales earnings.
