Eveready in the red as it slides into full-year loss

Consumer goods firm Eveready posted a full-year loss for the year ended September, hurt by restructuring at its Tanzanian division, the shutting of its main battery plant and insecurity in parts of Kenya.

Eveready East Africa swung to a loss of Sh248 million in the period from a pretax profit of Sh60.4 million as sales dropped 15 per cent to Sh1.22 billion, the company said in a statement.

“Insecurity affected various segments of our domestic market during the year. As a result, key markets like Coast, Nairobi and North Eastern registered a drop in revenue,” Eveready said.

Last year, Kenya suffered a string of attacks in Nairobi, the coastal strip and north east of the country. The attacks were blamed on Islamist militants from neighbouring Somalia. The violence has caused a slump in tourism, an economic mainstay for the coastal region and an important source of foreign exchange for Kenya.

Eveready booked a one-off cost of Sh246 million for shutting down its dry cell battery manufacturing plant in the Rift Valley town of Nakuru, which also contributed to a 35 per cent rise in financing costs to Sh56.5 million. The company, which also sells products such as flashlights and razors, said in October it would now rely on Energizer Inc’s factory in Egypt for battery supplies.

—Reuters