Battery retailer Eveready has issued another profit warning compounding problems for the troubled firm that had resorted to selling assets to remain afloat.
The firm which made a Sh62.4million loss in the six months to March 2018 compared to a profit of Sh351million in a similar period last year said the 2017 results contained a one-off item relating to gain on the sale of assets.
“A preliminary assessment of the projected financial results of the Company for the financial year ending 30 September 2018 indicates that net earnings will be at least 25 percent lower than that reported in the financial year ended 30 September 2017,” the firm said in a notice to the financial markets.
The Company recorded revenues of Sh150million, which is a 38 percent decline compared to a similar period last financial year. The value of its assets reduced from Sh577million to Sh468million, an 18 percent drop.
The Company does not recommend the payment of an interim dividend.
“The Company remains focused on the growth of the new products. We have gained sufficient insight into the performance of the new brand in the various segments. We have been able to establish them opportunity areas for each product, and we are now prioritizing resources in the areas that offer a faster and sustainable path to profitability,” the firm said.
It added that it will continue to anchor its business on car batteries, carbon zinc & alkaline dry cell batteries and flashlights. In addition, critical trade partnerships will be enhanced to grow the business. We are confident that the initiatives taken by the Company provide a clear path to growth.
“The Company is now entering its second year since the introduction of the TURBO® brand. We have recorded significant success over the last twelve months with most of the products attaining position two and in some cases leadership positions in the respective categories notwithstanding significant competition from established brands,” the firm said.