HOW FLAME TREE GROUP KEPT FLAME BURNING
The flame of Kenya's Flame Tree Group who have burnt out somehow in 2017 financial year but for profit from sale of assets which in the second year running saved the day.
In year to March 2016, similar gain of N2086.3m Ksh had helped the group report 198.4m Ksh profit before tax. Now, more 837.4m Ksh from the same source has handed 11.3% down 176m Ksh profit.
The one really good news emanating frpm the 2017 figures was the fact that Other operating income rose to N5.4m from 1.50m Ksh but the figure involved was far too small to make real impact.
The tune was dictated by 21.4% drop in tital income to 3387.4m Ksh even as core revenue grew by 11.4% to 2544.6m Ksh slightly ahead of 11.2% increase in cost of sale to 1640.3m Ksh.
This tune was tuned up by 26.3% rise in selling and distribution cost to 329.1m Ksh accompanied by 21.8% increase in administration expenses to 297.5m Ksh.
Finance cost remained more or less level at 62.7m Ksh and in spite of only 1.80% growth in other operating costs to 45.3m Ksh, drop in profit was inevitable especially as gain from asset disposal dropped 59.9% to N837.4m
Wisely, the directors are not recommending dividend but shareholders will be asked to approve bonus of one for ten at next AGM.
The Flame Tree Group manufactures and distributes plastic tanks, cosmetics and snacks in Kenya, Rwanda, Ethiopia; Mauritius, Mozambique and United Arab Emirates and employs above 1000 people, says group company secretary Shilpa Haria. It was established in 1989.
FLAME TREE GROUP. Kshm
2017. 2016
Total income 3387.4. 4311.0
Core income 2544.6. 2283.2
Other op. Inc. 5.41. 1.50
Distribution etc 329.1. 260.5
Administration 297.5. 244.3
Other op. Cost 45.3. 44.5
Asset sale gain. 837.4 2086.3
Finance cost 62.7. 62.7
Profit b4 tax. 176.0. 198.4
In year to March 2016, similar gain of N2086.3m Ksh had helped the group report 198.4m Ksh profit before tax. Now, more 837.4m Ksh from the same source has handed 11.3% down 176m Ksh profit.
The one really good news emanating frpm the 2017 figures was the fact that Other operating income rose to N5.4m from 1.50m Ksh but the figure involved was far too small to make real impact.
The tune was dictated by 21.4% drop in tital income to 3387.4m Ksh even as core revenue grew by 11.4% to 2544.6m Ksh slightly ahead of 11.2% increase in cost of sale to 1640.3m Ksh.
This tune was tuned up by 26.3% rise in selling and distribution cost to 329.1m Ksh accompanied by 21.8% increase in administration expenses to 297.5m Ksh.
Finance cost remained more or less level at 62.7m Ksh and in spite of only 1.80% growth in other operating costs to 45.3m Ksh, drop in profit was inevitable especially as gain from asset disposal dropped 59.9% to N837.4m
Wisely, the directors are not recommending dividend but shareholders will be asked to approve bonus of one for ten at next AGM.
The Flame Tree Group manufactures and distributes plastic tanks, cosmetics and snacks in Kenya, Rwanda, Ethiopia; Mauritius, Mozambique and United Arab Emirates and employs above 1000 people, says group company secretary Shilpa Haria. It was established in 1989.
FLAME TREE GROUP. Kshm
2017. 2016
Total income 3387.4. 4311.0
Core income 2544.6. 2283.2
Other op. Inc. 5.41. 1.50
Distribution etc 329.1. 260.5
Administration 297.5. 244.3
Other op. Cost 45.3. 44.5
Asset sale gain. 837.4 2086.3
Finance cost 62.7. 62.7
Profit b4 tax. 176.0. 198.4
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