Eveready E. A Plc has reported a loss before tax of Kes.50 million for the financial period ended 30th September 2020, a 53% improvement compared to a loss of Kes.107 million posted during the same period in 2019.
“Covid-19 was unforeseen and muted our growth in FY2020. This had an unprecedented impact on our financial performance and impacted the strength of our balance sheet.” Eveready E. A in their financial Release
The group posted a 30% decrease in revenue due to lower sales numbers during the period, attributed to the Covid-19 pandemic, which impacted their customers, their supply chain and route to market in the period.
As a result of the ongoing pandemic, the Eveready E. A adopted strict cost-saving measures in response to the pandemic, which resulted in a .30% reduction in overhead costs.
Eveready E.A Outlook
The group has said they continue to believe that their 2018/22 Strategy is the right one before the outbreak of COVID-19.
They have successfully concluded its Phase 1, namely, identifying new revenue drivers and aligning operation to those growth drivers to maximise their business returns.
The progress to our goal of achieving a positive performance by 2021 – was slowed down as a result of the global pandemic. We now work with new recovery timelines and their impact on our future financial performance. The directors, having reviewed future plans and projections resolved that additional measures are needed to protect and sustain the gains so far made under the plan. Mr, Thomas Masaki, Acting Managing Director.
The board of directors did not recommend the payment of an interim dividend.
Read also: Eveready’s Half Year Net Earnings Declines 30% on Covid-19.
