Flame Tree Group Holdings Limited has issued a profit warning expecting its profit after tax for the period ended December 31, 2025 to decline by more than 25%, reversing to a loss.
The NSE-listed firm attributed the anticipated loss to the absence of a KES 293.6 million one-off insurance income booked in 2024, as well as mounting pressure from financing costs, and unfavorable macroeconomic conditions affecting the manufacturing sector.
In FY2024, Flame Tree Group reported a net profit of KES 201.8 million, rebounding from a net loss of KES 74.5 million in FY2023.
The Group’s top line edged downward, with revenue declining 6.6% to KES 4.2 billion from KES 4.5 billion in the previous year. However, operating profit surged 69% to KES 470.1 million from KES 278.3 million in FY2023.
Flame Tree Group’s Resilience
Despite the headwinds, the Group noted continued operational resilience, supported by revenue growth, improved margins, and cost discipline.
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