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Eveready ‘Not Out of the Woods Yet’ Posts Loss of KHS207M

BY David Indeje · February 1, 2017 07:02 am

Eveready East Africa Ltd (NSE: EVRD) has reported a net loss of KSh 207 Million in its Financial Year results that ended September 2016 compared to its loss of Ksh 202 Million reported in the same period in 2015.

The company attributes the poor performance to a challenging out of stock situation occasioned by lack of supplies from its global supplier of carbon zinc and alkaline batteries.

“As a result the company recorded a 51 percent decline in total revenues to Ksh 553 million. This situation affected both our domestic and export business,” in a statement.

The company also disclosed that the closure of its operations in Uganda impacted the performance of the year by Ksh 35 million.

“Finance costs mainly driven by the high interest rate regime before the change in law saw the company incur financing cost of Ksh 72 million up by 44 percent compared to Ksh 50 million in previously.

“The above factors led to a loss after tax of Ksh 207 million compared to a loss after tax last year of Ksh 202 million.”

In September 2016, it issued a profit warning alert in anticipation that its earnings for the period ended 30th September 2016, was to be at least 25 percent below the profit reported in a similar period last year.

In 2014, the company closed down its dry cell plant in Nakuru attributed to competition from low-cost imports as part of a five-year strategic plan meant to see the firm change its business model.

Currently, it has introduced two new lines in its portfolio where the company signed a distribution agreement with Clorox SSA ltd to distribute CLOROX bleach within Kenya and also launched Everclean, a locally manufactured detergent.

Read:  Eveready Terminates Contract with Energizer Holdings

It eyes to develop its own range of portable power products. Initiatives which are geared towards ensuring the company get back into profitability and long term sustainability.

No dividend has been recommended.

Its 50th Annual General Meeting is scheduled for 28 March 2017.

Related: CIC Insurance Group Issues Profit Warning

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_Indeje David can be reached on: (020) 528 0222 / Email: info@sokodirectory.com

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