Eveready issues profit warning in absence of one-off gain

NAIROBI, KENYA: Eveready East Africa has posted half year loss of Sh64.5 million from a profit of Sh365 million in a similar period last year, prompting it to issue a profit warning.

In the absence of the Sh452.4 million one-off gain enjoyed last year from the sale of assets, the company expects its full year earnings to be at least 25 per cent lower than even as sales revenue in the first six months of trading fell by more than a third.

Managing Director Jackson Mutua says that the results for half-year period ended March 31, 2017 was weighed down by a depressed economy occasioned by unfavorable political environment.

He added that preliminary assessment of the projected financial results of the company for the financial year ending September 30, 2018 pointed to a profit warning.

The company is now entering the second year since cutting ties with key supplier- Energizer- to start its own brand, Turbo. Mr Mutua says that there is still a challenge in fully entrenching the new brand in the customers’ minds.

“We are confident that the initiative taken by the company provide a clear path to growth and profitability while ensuring that the long term sustainability of the business is realised,” he said.