Eveready sales revenue for the 6 months period ending 31 March 2020 declined by 30 percent to Ksh 74.3 million from Ksh 105.6 million recorded in a similar period in 2019. The decline was partly a result of the disruption of the supply chain in early 2020 as the source markets dealt with the COVID19 pandemic.
The cost of sale for the six months was Ksh53.2 million a significant drop from the Ksh80 million as of 31 March 2019. Overhead expenses amounted to Ksh39 million in the period under review compared to Ksh75.5 million recorded in March 2019. Eveready had a gain on disposal of property, plant, and equipment amounting to Ksh 1.1 million.
Gross profit declined to Ksh21.1 million in the period under review from the Ksh25.6 million recorded on March 31, 2019.
Eveready’s half-year net loss narrowed to KSh15 million from Ksh39.6 million recorded in a similar period in 2019, a 63 percent improvement.
Eveready current liabilities increased from Ksh129.7 million in September 2019 to Ksh154million as at March 31, 2020.
The management says that they have completed the implementation of key turn around programs such as fully aligning the company’s business model to its key revenue and margin drivers. The company successfully eliminated the drag of non-viable business lines.
In addition, the management continues to maintain a clear focus on cost minimization. Eveready shed Ksh 37 million in overhead costs by reviewing its cost structure, a reduction of 48% from prior year.
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