Nairobi Securities Exchange listed Eveready Ltd released its financial results for the full year ending September 2016 with net loss increasing to Ksh 207 million from Ksh 202 million reported in the same period in 2015.
The company’s total revenue declined by 51% to Ksh 553 million saying it was experiencing out of stock situation occasioned by lack of supplies from their global supplier of zinc and alkaline batteries which adversely affected supply for a considerable period during the year under review. This in turn affected its domestic and export business.
Over this period, finance costs shot up by 44% to Ksh 72.4 million as a result of massive increase in borrowings to Ksh 443 million.
In the same period, Eveready announced that it had discontinued its operations in Uganda leading to a loss of Ksh 35 million.
The loss making company said that it had reviewed its relationship with Energizer Middle East and Africa and therefore had decided not to renew the distribution agreement citing onerous terms which were not in the best interest of the business. However, the termination of the agreement with Energizer which contributes more than 80% of Eveready’s revenues will significantly affect its sales going forward.
In 2016, the company decided to sell it headquarters in Nakuru saying this ‘Strategic’ decision was meant to clear debt and provide sufficient capital to support its distribution business.
As expected, the company did not declare any dividends.
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