Eveready forecasts full year loss

Eveready East Africa is expected to sink further into losses, with the battery maker warning shareholders and investors that its full year earnings are expected to drop by at least 25 percent.

In a profit warning to shareholders, Eveready is anticipating a massive decline in sales caused by a prolonged delay in accessing stock during the year.

This means that the batter maker will be further in the red having announced a full year loss of Sh77.7 million in 2015.

“On the preliminary review of the latest available financial information of the company, the company expects to record a loss for the year ended 30 September 2015 mainly attributable to a substantial decrease in revenue caused by a one off event,” Eveready said in a statement to shareholders.

Eveready alarmed recorded a half year loss of Sh58.8 million shillings as it struggled to get stock to supply in the market.

The company shut down its manufacturing plant in 2014 after years of losses owing to importation of cheap batteries flooding the market.

Companies listed on the Nairobi Securities Exchange are required to inform shareholders and prospective investors when their earnings drop by more than 25 percent.

This has seen Eveready change tact and delve into product distribution especially of fast moving consumer goods.

The news was not well received by investors with the company’s share price dropping 2.44 percent to close the day at Sh2.

Eveready has however indicated that the stock out situation had been resolved with the preliminary financials yet to be reviewed.

The firm has been struggling to turn a profit and recently diversified its offering an effort of boosting income.