Eveready East Africa has issued a profit warning indicating that it will be falling deeper into losses.According to the battery firm, earnings will drop by at least a quarter.
The loss-making Eveready has issued a profit warning saying earnings for the period ending September 30, 2016 are projected to nosedive due to a significant drop in sales caused by a prolonged stock out during the year.
The Capital Markets Authority requires companies to make the disclosures – if earnings are projected to fall by more than 25 per cent – to warn investors of the risks of capital losses and reduced dividend as a result of the profit fall.
Eveready reported a Sh77.7 million net loss in the year ended September 2015, meaning the battery firm will at best record Sh97 million loss in the current period.
