Eveready’s Half Year Net Earnings Declines 30% on Covid-19
Eveready announced results for the first quarter of 2020. Net loss for the first quarter improved by 62.0% to Kes 15.0 million , or Kes 0.07 per diluted share, compared to Kes 37.0 Billion, or Kes 0.19 per diluted share, for the first quarter of 2019.
In the first quarter 2020, Eveready’s revenues declined by 29.7% to 74.3 million from 105.6 million attributable to the anticipated transitory issue arising from a product mix review which will reverse itself in future periods and, the disruption of supply chain as a result of the COVID-19 pandemic.
Through reviewing of the cost structure, the company reduced its cost by 48.0%, shedding Kes 37.0 million in overhead costs. The company anticipates that the COVID-19 pandemic will a significant impact on the business, however, not fully quantified during this time.
Going forward, the company has adopted various measures to mitigate its impact to the business and also continues to focus on achieving profitable growth.