Eveready has posted a net profit of Sh. 267.2 million in the financial period ended September, 2017.
This was in comparison to an after-tax loss of Sh. 206.5 million in a similar period a year earlier.
“The sale of our Nakuru property which was finalised in the year under review led to a gain of Sh. 452 million from the sale proceeds. The proceeds were used to clear the company’s debts and provide working capital to support the business,” said Eveready managing director Jackson Mutua in a statement.
Eveready closed down its dry cell factory in Nakuru in September 2014 as pressure from cheap imports drove it into losses. It now sells batteries imported mostly from Egypt and has diversified to other products such as car batteries.
Its sales in the period under review, however, tumbled by 38.74 per cent (an equivalent of Sh. 214.3 million) to Sh. 338.9 million from Sh. 553.3 million in a similar period a year earlier, dealing a blow to recovery efforts.
“During the year under review we experienced a significant downturn in the economy following a prolonged period of electioneering, insecurity in certain segments of the market, weak credit growth creeping inflation and drought,” said Mr Mutua.