Flame Tree Group Holdings (FTG Holdings) returned to profitability in the first half of 2026, with revenue rising 11.6% and operating profit more than doubling, the Nairobi Securities Exchange-listed manufacturer said on Thursday.

The diversified African manufacturing group reported revenue of 2.315 billion Kenyan shillings ($18 million) for the six months to June 30, 2026, up from the prior-year period, according to a company statement. Gross profit rose 12.8% to 856.061 million shillings.

Operating profit climbed 123% to 161.0 million shillings, while gross margin held steady at approximately 37.0%, compared with 36.6% in the first half of 2025, the company said.

Flame Tree Group Holdings posted a profit before tax of 5.5 million shillings and a net profit of 5.2 million shillings for the period, marking a swing back into positive territory after a loss in the prior six-month period.

Heril Bangera, Chief Executive Officer of FTG Holdings, said the results marked a turning point for the company.

“H1 2026 represents an important step forward for Flame Tree Group,” Bangera said in the statement, adding that the company was “growing again” after returning to profitability and strengthening its financial structure.

Bangera said the group’s operating profit had more than doubled during the period, which he attributed to efforts to strengthen liquidity, reduce costs and expand into new markets.

The company said it had built positive working capital of approximately 504 million shillings, an improvement in its financial position from prior periods.

Flame Tree Group Holdings also reported an improved debt maturity profile, with current borrowings reduced to 48.0 million shillings, the statement said, without disclosing the comparative figure for the prior period.

Total assets stood at 4.458 billion shillings as of June 30, 2026, according to the company’s consolidated statement of financial position included in the results announcement. Total equity was reported at 1.423 billion shillings.

The company attributed the increase in revenue to stronger performance across its manufacturing segments.

Cost of sales rose during the period alongside the increase in revenue, the filing showed, while selling and distribution expenses, and administrative expenses, were also reported in the group’s consolidated statement of profit or loss.

Finance costs were also disclosed in the results, reflecting the company’s ongoing borrowings, though FTG Holdings said its debt maturity profile had improved compared with previous reporting periods.

FTG Holdings said it expected increased confidence from investors and other stakeholders following the improved performance.

“We enter H2 2026 with increased confidence and a stronger operating and financial base,” the company said, adding that it would continue to focus on “profitable and sustainable growth” while investing in product innovation.

The company said it planned to continue engaging with customers, employees and shareholders as part of its strategy for the remainder of the year.

FTG Holdings is listed on the Nairobi Securities Exchange under the ticker FTGH. The group describes itself as a diversified African manufacturing conglomerate with operations spanning Kenya, Rwanda, Ethiopia, Mozambique, Mauritius and the United Arab Emirates.

The company holds brands across sectors including plastics, water and sanitation products, packaging, cosmetics, food production and household goods.

Kenya’s manufacturing sector has faced headwinds in recent years from high borrowing costs, currency volatility and elevated input costs, factors that have weighed on the profitability of several listed industrial companies on the Nairobi bourse.

Flame Tree Group Holdings’ return to profit comes as some Kenyan manufacturers report improved trading conditions in 2026, though the broader sector continues to face competitive pressure from imports and fluctuating raw material costs, according to industry data.