Eveready posts Sh273Mn profit, issues first dividend in 7 years

March 29, 2018 (4 weeks ago)
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Eveready EA Managing Director Jackson Mutua said funds raised from the sale of the properties, valued at Sh1.4 billion/FILE

, NAKURU, Kenya, Mar 29 – Eveready East Africa has registered a pre-tax profit of Sh273 million for the year ending September 2017, ending years of losses for the Nakuru-based battery maker.

The positive results come on the back of a bitter separation between Eveready and Energizer, where the former lost a court case seeking to stop Energizer from appointing a local distributor.

Eveready has been incurring losses due to the influx of cheap imports and counterfeits which resulted in the closure of its dry batter factory in Nakuru in September 2014.

Speaking in Nakuru after the Company’s Annual General Meeting Eveready’s Managing Director Jackson Mutua said the company has solved the low stock levels caused by the termination of the 49-year partnership with Energizer.

Mutua said the sale of some of its properties in Nakuru at a cost of Sh1.4 Billion enabled the company clear its debts.

“Eveready also paid taxes with the proceeds and provided working capital to support business,” said Mtua.

He said the management would entrench the gains realized in 2017and focus on the long-term sustainable growth and profitability of Eveready.

The company launched Turbo in November 2016 after terminating the contract with Energizer

The company chairperson, Lucy Waithaka said the decision to divorce from Energizer Holdings 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 said.

She said the company had expanded its production to household lighting and fabric care products.

Shareholders will receive a dividend payout of Sh210 million.

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