Eveready East Africa Says That Profit Falls 69% on Zinc, Counterfeit Cells
Eveready East Africa Ltd., a Kenyan dry-cell battery manufacturer, reported full-year profit fell 69 percent amid increased trade in counterfeit batteries.
Net income fell to 8.7 million shillings ($108,276) in the 12 months to Sept. 30, compared with 28.3 million shillings a year earlier, the Nairobi-based company said in a statement published in Nairobi-based Daily Nation.
Sales were little changed at 1.64 billion shillings compared to 1.65 billion shillings a year earlier, it said.
The earnings decline was caused by “illicit dry cells trade in the country, including sub-standard products and dumping, which continues to flourish,” the company said.
A 43 percent rise in the average price of zinc and depreciation of the Kenyan shilling in the second half of the year led to higher financing costs, Eveready East said.
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