Eveready East Africa Plc posted a loss of KSh 34.7 Million for the year ended September 30th 2021, compared to a net loss of KSh 69 Million over a similar period in 2020, a 49% improvement.
The listed battery maker made a reduced grosss profit of KSh 21.1 Million compared to KSh 27.9 Million over a similar period in 2020.
The firm made a pre-tax loss of KSh 34.7 Million in 2021 compared to KSh 49.9 Million in 2020.
Eveready Earnings per Share takes a plunge
Eveready Earnings Per Share(EPS) which measures a firm’s profitability fell to KSh 0.17 in 2021 from KSh 0.33 in 2020.
In comments by directors of Eveready, the year began on a low note following the challenges experienced in the previous year and was made worse by the operational challenges occasioned by working capital, supply chain globally and effects of the Covid-19 pandemic, especially in the first half of the fiscal year.
This subsequently improved in the second half of the year as the Company redefined its supply chain strategy to align with global trade flows by considering new trade agreements and appointing alternative suppliers from the South African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) to mitigate the supply chain risk.
There was a 33% decrease in revenue due to lower sales numbers during the period principally because of the Covid-19 pandemic which impacted the firm’s customers and its supply chain and route to market in the period.
“We adopted strict cost saving measures in response to the pandemic which resulted to 17% reduction in overhead costs,” said the firm in a statement signed by the Board Chairperson Lucy Waithaka and Thomas Masaki, Acting Managing Director, Eveready Group.
The Board of Directors of Eveready East Africa Plc do not recommend the payment of a dividend.
In its outlook, the firm says effects of the Covid-19 pandemic remain a concern. The Board and Management have taken the necessary actions to safeguard company staff and interests of the business in 2022 and beyond.
Though the core capital has been eroded over time; the Company’s management said it is engaging key stakeholders on initiatives to place the firm on a path to sustainable recovery.
The firm has issued a notice that it will hold its 55th Annual General Meeting (AGM) of Eveready East Africa Plc will be held via electronic communication (virtual/online meeting) on Friday, 4th March 2022 at 2.30 p.m.
The AGM will confirm the minutes of the 54th Annual General Meeting held on Thursday 22nd July 2021; to receive, consider and, if approved, adopt the Company’s audited Financial Statements for the year ended 30th September 2021 together with the reports of the Chairperson, Directors and Auditors thereon; elect directors and approve their remuneration and to transact any other business for which appropriate notice has been issued and received.
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