Listed manufacturer of plastic tanks, cosmetics and snacks, Flame Tree Group has announced an 8 per cent drop in net earnings for the six months through June as costs spiralled out of control.
Profit after tax edged down to Sh80.5 million for the 6 months to 30 June 2016 compared Sh81.2 million for the corresponding period in 2015.
Selling and distribution costs almost doubled from Sh98 million in the same period last year to Sh175 million this year.
The group posted half-year revenue of Sh1.202 billion up from Sh1.114 billion compared to the same period in 2015.
“The increase in total operating expenses is attributable to rigorous advertising and marketing campaigns geared to increase revenue in the plastics and FMCG divisions,” the company said.
Finance costs rose from Sh19 million to Sh43 million in the period under review. In January 2016, the group acquired SuzieBeauty line of colour cosmetic brand.
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