Flame Tree Group makes Roto and Jojo water tanks. For the year ended December 2019 the company earned net income of Sh44.9 million. This is a 33% increase from Sh33.7 million in 2018. Covid-19 presents the company with new business opportunities.
The water tanks maker’s income after paying for its expenses and tax have increased by 33% to Sh44.9 million. This is for the financial year ended December 2019. Reduced cost of making and selling products helped the company increase its profits. That reduced cost of selling made the company cover the fall in revenue. Revenues dropped by Sh63.8 million during the year.
Mr Heril Bangera, chief executive officer, Flame Tree Group Holdings, said that the revenue drop was offset by increased gross profit. He said that the fall in revenue was because the company was moving to its new factory in Ethiopia.
Covid-19 brings business
Covid-19 presents the company with what it calls positive short-term effects. To help prevent the virus the company is making sanitising cabins, handwashing stations and hand sanitisers. In addition, it is making dust bins to separate medical or potentially infectious waste.
Mr Bangera said that during the first three months of the year his company has seen positive effects of Covid-19. The company has sold more handwashing stations and hand sanitisers. It has also benefited from low prices of plastic raw materials and fuel.
Putting money in business
The company has finished a number of investments. They bought vehicles, installed machines and equipment and built a new factory in Ethiopia. “This will allow us to grow in the future without having any restriction in production capacity,” said Mr Bangera.
Guarding business and employment
The company has announced a number of ways to preserve its finances and employment. It also has an agreement with its bankers who have allowed the company to take a rest in loan repayments.
Other items sold by Flame Tree
It makes and supplies cosmetics, snacks, spices and playground equipment.