Eveready East Africa is back in the loss-making territory. The battery distributor has anniunced that iy expects to report a loss in the full year that will end in September.
This has come at a time when Evereday is coping with a half year loss of Sh. 64.5 million.
This net loss is a climb down from the net earnings of Sh. 364.9 million it posted a year earlier when it benefitted from a Sh. 397.3 million gain from sale of its land in Nakuru.
The performance, which was also worsened by lower sales, has seen Eveready issue a profit warning for the full year ending September.
“The full year 2017 results contained a one off item relating to gain on the sale of assets. Therefore, 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 per cent lower than that reported in the financial year ended 30 September 2017,” the company said in a statement Thursday.
Eveready’s sales fell 38 per cent to Sh149.7 million in the half year.
The company is importing and distributing various household goods including Turbo brand of batteries after losing distribution of Energizer dry cell battery brands.
The firm has cut its expenses significantly but this was not been enough to bring it to profitability.
