Flame Tree Posts Strongest Half Year Operating Performance Since Listing

Roto Tanks and Jojo plastics maker Flame Tree Holdings posted its strongest half year operating performance in its listed history in 2026, with revenue rising 11.6% to KSh 2.31 Bn and operating profit surging 123% to KSh 181.0 Mn.

• The group returned to a KSh 5.2 Mn net profit, but finance costs consumed about 97% of operating profit.
• Gross profit rose 12.8% to 856.1 Mn, with gross margin improving to about 37.0% from 36.6%.
• Flame Tree plans to increase production, expand distribution and product innovation, and continue improving its funding structure in H2.

Selling and distribution expenses fell 2.3% to KSh 346.9 Mn and other operating expenses declined 9.8% to KSh 81.7 Mn, offsetting a 6.2% increase in administrative expenses to KSh 246.5 Mn.

The performance marked a turnaround from losses of KSh 76.4 Mn in H1 2025 and KSh 90.6 Mn in H1 2024. However, the bottom line remains below levels achieved earlier in FTG's listed history, including profits of KSh 81.2 Mn in H1 2015 and KSh 80.5 Mn in H1 2016.

Finance costs remain the main constraint on earnings, rising 11.5% to KSh 175.6 Mn and leaving just KSh 5.4 Mn in pre-tax profit. The burden has increased sharply as FTG has expanded: finance costs stood at KSh 19.6 Mn in H1 2015 and KSh 43.8 Mn in H1 2016.

FTG has, however, substantially changed its debt maturity profile. Current borrowings fell 90.2% to KSh 48.1 Mn, while non-current borrowings rose 75% to 1.19 Bn. Commercial paper stood at KSh 81.0 Mn and the bank overdraft at KSh 462.0 Mn, meaning the improvement reflects longer debt maturities rather than outright deleveraging.

Working capital improved to a positive KSh 504 Mn as current assets of KSh 2.15 Bn exceeded current liabilities of KSh 1.65 Bn. Cash from operations nearly doubled to KSh 449.6 Mn, while net operating cash flow increased 26.3% to KSh 272.2 Mn, its highest level in the available H1 series since listing.
Currency movements remained a drag. A KSh 104.7 Mn loss from translating foreign operations pushed total comprehensive income to a KSh 99.5 Mn loss despite the return to net profitability.

Management said parts of the group are still operating below full potential because of raw-material and working-capital constraints, while demand remains strong. FTG plans to increase production, expand distribution and product innovation, and continue improving its funding structure in the second half.