IN THE RED

Eveready East Africa end-year losses to almost triple

The company did not de-recognise deferred tax which is reviewed at the end of the financial year.

In Summary

• The firm's preliminary results show losses likely to hit Sh303.5 million, almost triple compared to Sh111.6 million in 2018.

• The strapped firm has been issuing profit alerts since the middle of the decade as digital disruption takes shape and growth in power connectivity.

Eveready chairperson Lucy Waithaka with Group MD Jackson Mutua during the unveiling of the company’s strategic plan for 2014-17 in Nairobi on September 29, 2014.
Eveready chairperson Lucy Waithaka with Group MD Jackson Mutua during the unveiling of the company’s strategic plan for 2014-17 in Nairobi on September 29, 2014.
Image: FILE

Eveready East Africa has issued a profit warning, indicating that it will be falling deeper into losses.

A statement published in a local daily says earnings for the year ended September 30 last year will drop by at least a quarter on the impact of Sh195 million de-recognised deferred tax.

“The company did not de-recognise deferred tax which is reviewed at the end of the financial year. It is however on the track in executing strategy 2018-22 and has registered improved performance compared to last year,” the statement reads in part.

 
 
 

The Capital Markets Authority requires companies to make the disclosures – if earnings are projected to fall by more than 25 per cent – to warn investors of the risks of capital losses and reduced dividend as a result of the profit fall.

The cash-strapped firm has been issuing profit alerts since the middle of the decade as digital disruption takes shape and offers variety in power connectivity.

The firm's preliminary results show losses likely to hit Sh303.5 million, almost triple compared to Sh111.6 million in 2018.

It is expected to hold the annual general meeting Monday next week. 

Eveready East Africa’s share at the Nairobi securities exchange has shed significantly trading Sh1.12 yesterday, eight times lower compared to the IPO price of Sh9.80 in 2006.

The firm now joins several other listed entities that have since issued profit warnings.

They include Kenya Airways, Standard Group, NSE, Old Mutual, Kenya Power, Kenya Re, Unga Group, East Africa Portland Cement, BOC Group, Kapchorua Tea and Britam.