NAIROBI, KENYA, JAN 31 — Eveready East Africa (Plc) revenues for the year ended September 30, 2017 dropped 38.7 per cent to close at Ksh339 million, compared to Ksh553.3 million a year earlier.
The Nairobi Securities Exchange listed company has blamed the decline on among others, uncertainty in the market caused by prolonged elections in Kenya and the credit crunch experienced in the market after the capping of interest rates.
“We experienced a significant downturn in the economy following prolonged period of electioneering in Kenya, insecurity in certain segments of the market, weak credit growth, creeping inflation and drought,” the company reported in its audited results on Wednesday.
“These factors, together with our status as a new entrant in the battery business resulted to a decline in revenues,” board chairperson Lucy Waithaka and managing director Jackson Mutua affirmed on behalf of the board.
The company however reported a Ksh267.2 million profit for the period after a series of losses.
This is a turnaround from a Ksh206.5 million loss it posted in the full year ended September 30, 2016 and a loss of Ksh201.5 million reported a year earlier.
The regional consumer goods company closed its Nakuru dry cell manufacturing factory in September 2014 and opted to source batteries from its affiliate in Egypt.
This is after cheaper and illegal imports ate into its market making it economically unviable to run the plant, which had been reduced to a 25 per cent operating capacity.
The sale of its Nakuru property, which was finanlised in the year under review, earned the company Ksh452 million.
The proceeds were used to clear the company’s debt and provide working capital to support the business, it said.
“Overall, the company registered a pre-tax profit for the year of Ksh273 million,” the firm reported.
During the year under review, Eveready launched its brand of portable power solutions under the brand name TURBO, in November 2017, with its success pegged on the company’s knowledge of the industry and market.
The board has declared a dividend of Ksh1 per share (Ksh210 million), payable to shareholders on the register on August 2017. It however does not recommend the payment of a final dividend in respect of financial year 2017.
“Going forward we will be committing our efforts on enhancing revenues and achieving profitability by focusing effort on key drivers of our business, that will assist the business generate sufficient revenues in order to bring the business to profitability within the shortest time possible,” the board said.
The company is expected to hold its 51st annual general meeting in Nakuru on Tuesday, March 27, 2018.
Eveready East Africa PLC is a public limited liability company incorporated in Kenya in 1967 and headquartered in Nairobi, Kenya.
The Company distributes TURBO® and TURBO Plus® branded car batteries, bulbs, flashlights, lanterns and a variety of dry cell batteries. It also distributes EVERCLEAN, its fabric care and household cleaning products.
It remains one of the largest suppliers of portable power solutions in East Africa.