Eveready blames Sh58.9m loss on stock outs

A worker at Eveready’s former battery plant in Nakuru. The battery firm has reported a Sh58.9 million loss for its half-year earnings. PHOTO | FILE | NATION MEDIA GROUP

Eveready East Africa has slid further into the red as its net loss for the six months to March worsened by nearly four times with management blaming the performance on product stock outs.

The battery firm has reported a Sh58.9 million loss for its half-year earnings, compared to the Sh12.4 million loss posted during a similar period last year.

Eveready, which shut down its Nakuru factory in September 2014, saw its revenues drop by a half to Sh300 million with management attributing the dip to changes in the global supply chain.

“The group recorded a drop in revenue in the half year… as a result of changes with our global supplier of carbon zinc and alkaline batteries which adversely affected the supply of products for a considerable period of time,” the firm sated.

“This aspect led to an out of stock situation, a factor that compromised revenue performance and contributed to a loss before tax. The out of stock situation has been addressed.”

Eveready’s net loss stood at Sh77.7 million for the year to September, down from Sh177.5 million the year before on lower costs of closing its manufacturing plant in Nakuru.

The firm has embarked on diversification including distributing household products. It also plans to venture into real estate.