EverReady East Africa has registered a Kshs 249 million Profit After Tax for the year ended 30 September 2017 closing in at Kshs 273 million pre-tax profit.
The company attributed the positive results to the growth of the portable power solutions Turbo, a brand that was launched in November 2016.
This new brand launch came soon after Eveready lost a court case to Energizer seeking to stop the later from appointing a local distributor leading to separation of the two.
The company chairperson, Lucy Waithaka commented on the ending of Eveready & Energizer contract terming the decision as a valiant move which has given the company complete control and diversity. “Our business is stronger now because of the bold decisions that we have taken to guarantee our future sustainability,” she added.
Eveready closed its dry battery factory in September 2014 because of continuing losses that were due to inflow of cheap imports and counterfeits. The company later sold its property in Nakuru factory at Kshs 452m. The proceeds for this was used to clear debts, pay taxes and provide working capital to support business.
The company’s net sales reduced to Kshs 339M in 2017 from Ksh 553M in 2016 which it attributed to factors such as its status as a new entrant in the battery business, a prolonged electioneering period, insecurity in certain segments of the market, weak credit growth, creeping inflation and drought. Earnings Per Share improved from (0.98) in previous year to 1.27 in 2017. Free cashflow End of year also rose from (Kshs 0.731M) to Kshs 246m. The company’s shareholders will receive a dividend payout of Kshs 210M.
The company looks forward to committing more efforts on enhancing revenues and achieving profitability which will be through pivoting its effort on key drivers of business that will lead to generation of sufficient revenues. The company is also looking forward to growth in revenues in key markets, segments and/or categories that it participates in.