Flame Tree Group Holdings, a leading African manufacturer and distributor of plastics, cosmetics, snacks, spices, packaging, and household products, Board of Directors has notified its shareholders and the public that the Group expects to report a loss after tax for the financial year ended 31 December 2025, compared to a profit reported in the previous financial year ended 31 December 2024.
The anticipated change represents a variance of more than 25% compared to the prior year’s reported profit after tax.
Flame Tree Shareholders are advised that the profit reported in the 2024 financial year included a non-recurring insurance income accrual amounting to KSh 293,595,719, recognized based on the Group’s assessment under IAS 37.
As previously disclosed, this treatment was subject to audit qualification, as the auditors considered that the threshold of “virtually certain” recognition under IAS 37 had not been met at the reporting date. The related insurance claim remains under ongoing review and resolution.
Accordingly, the results for the financial year ended 31 December 2024 are not directly comparable to those of 2025 due to the impact of this non-recurring item.
The financial results for the year ended 31 December 2025 therefore reflect Flame Group’s normalised operating performance, without the impact of such one-off income.
The Flame Tree Board said that operationally, the Group has demonstrated resilience, supported by Growth in revenue and gross margins; Continued cost discipline; and Reduction in finance costs.
Flame Tree Attributes the Profit Drop to a non-recurring insurance Income recognised in 2024
The reported loss for the year is primarily attributable to the absence of the non-recurring insurance income recognized in 2024, continued pressure from financing costs during the year and a challenging macroeconomic environment affecting the manufacturing sector.
The Board wishes to emphasize that the underlying fundamentals of the business remain strong, and that Flame Tree Group continues to focus on improving operational efficiency, optimizing its capital structure, and strengthening its regional footprint.
“The Group’s audited financial results for the year ended 31 December 2025 will be published in due course,” said Heril Bangera – CEO, Flame Tree on behalf of the Board.
Flame Tree is a leading regional manufacturing Group – listed on the Nairobi Securities Exchange (NSE: FTG) – with operations in Mauritius, Kenya, Rwanda, Ethiopia, Dubai and Mozambique. It operates in FMCG, plastics and trading, with a brand portfolio that includes Roto Tanks, Jojo Plastics, Zoe, Cerro, Alana Skin, Siora, Happy’s and Builtmart.
In the first half of 2026, Flame Tree Group Revenues were up 2% to KSh 1.84 billion, driven by strong growth in East Africa. Margins were stable at 36.6%, supported by steady raw material prices and operational efficiency. EBITDA was KSh 153 million, compared to KSh 164 million in H1 2024.
The firm made a Net loss of KSh 76 million in H1 2025, an improvement from a KSh 90.6 million loss in H1 2024.
Finance Costs hits KSh 157 million, reduced by 13% from 2024 while Net debt was down by KSh 88 million. Working Capital improved to 33 days, strengthening cash flow and liquidity.
Kenya maintained its position as the Group’s primary growth engine, with both Jojo and Roto achieving solid performance. Jojo advanced its sustainability agenda by launching plastic recycling operations for HDPE and PET materials, while also investing in new machinery to significantly expand production capacity.
In Rwanda, Build Mart recorded exceptional growth following the successful introduction of household product lines. The Cosmetics division also posted robust gains, though profitability was tempered by the impact of newly implemented tax measures.
Ethiopia and Mozambique faced challenges from forex shortages, political unrest, and reduced demand, which constrained performance.
In Cosmetics & Snacks, Revenues recovered in for Flame Tree Kenya (16%) and Rwanda (30%), confirming strong consumer demand. New cosmetic taxes, however, pressured margins.
FMCG remains a high-potential growth segment, with new products and expanded distribution planned.
Heril Bangera, CEO of FTG Holdings, said “The first half of 2025 reflects the resilience of our business model and the strength of our teams. With strong momentum in East Africa, new capacity investments, and our recycling initiatives, we are building a more sustainable and competitive business. Despite challenges with finance costs and insurance delays, we are confident in our strategy and the opportunities ahead.”
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