Par Value: 1/-
Closing Price: 1.01
Total Shares Issued: 210000000.00
Market Capitalization: 212,100,000
EPS: -0.33
PE: -3.061
Kenyan battery manufacturer
Everready reports FY 2020 Earnings through 31st December 2020 versus December 2019
FY Sales 133.59m versus 190.667m
FY Cost of Sales [105.655m] versus [154.013m]
FY Gross Profit 27.935m versus 36.654m
FY Overhead Expenses [84.012m] versus [163.516m]
FY Profit [loss] before Tax [49.937m] versus [106.895m]
FY Profit [Loss] after Tax [69.010m] versus [303.544m]
FY EPS [0.33] versus [1.45]
No dividend
Eveready E.A. PLC FY 2019 results through 30th September 2019 vs. 30th September 2018
FY Sales 190.667m vs. 251.720m -24.254%
FY Cost of sales [154.013m] vs. [220.108m] -30.028%
FY Gross profit 36.654m vs. 31.612m +15.950%
FY Other income 14.873m vs. 15.220m -2.280%
FY Gain on disposal of assets 5.983m vs. 4.302m +39.075%
FY Overhead Expenses [163.516m] vs. [217.510m] -24.824%
FY Finance costs [0.889m] vs. [0.455m] +95.385%
FY [Loss]/ Profit before tax [106.895m] vs. [166.831m] -35.926%
FY Tax income/ [expense] [196.649m] vs. 55.157m -456.526%
FY [Loss]/ Profit for the year from continuing operations [303.544m] vs. [111.674m] +171.813%
FY [Loss]/ Profit for the year from discontinued operations - vs. [4.721m]
FY [Loss]/ Profit for the year [303.544m] vs. [116.395m] -160.788%
[Loss]/EPS Basic and diluted [1.45] vs. [0.55] -163.636%
Total equity 110.001m vs. 437.667m -74.867%
Cash and cash equivalents at the end of the year 78.189m vs. 68.566m +14.035%
No dividend
COMMENTS ON THE RESULTS
In FY 2019, we focused on Investing in products that prioritises a return for our business, notably the automobile segment. This resulted to actions being completed in Q2 which re-structured our organization to deliver on our identified key growth areas. To this end, we refined and aligned our business model resulting to a clearer and more effective go to market model in terms of channel, resourcing (both human and capital) and associated route to market programs, and this re organisation has facilitated a significant reduction in costs at 33%.
The challenge in the transition was replacement revenue which though reversible, was an anticipated transitory challenge. Therefore, although there was a 24% decline in revenues in 2019 compared to 2018, the impact was mitigated by margin improvements due to increased revenues emanating from our automobile segment and thereby affirmed the decisions made in investing in this growing business.
As a result of the above, although our second half performance registered an improved performance compared to the first half of the year, our total year performance was a loss before tax of KES.106M compared to KES.167M in 2018.
We de recognised the deferred tea asset accrued over the last decade resulting to a one-off impact of KES.197M. This impacted our bottom line resulting to on after tax loss position of KES304M.
Dividend
The Board does not recommend the payment of a dividend.
Outlook
Our automobile segment continues to generate impressive returns and recorded a 540% increase in revenue over prior year. We will continue to focus our investments to our growth opportunities in order to escalate revenue growth even further and thereby organically grow the business.
Eveready E.A. PLC H1 2019 results through 31st March 2019 vs. 31st March 2018
H1 Sales 105.642m vs. 149.776m -29.467%
H1 Cost of sales [80.069m] vs. [120.948m] -33.799%
H1 Gross profit 25.573m vs. 28.828m -11.291%
H1 Other income 11.150m vs. 9.755m +14.300%
H1 Gain on disposal of Property, Plant and Equipment 0.414m vs. 0.472m -12.288%
H1 Overhead expenses [75.476m] vs. [101.378m] -25.550%
H1 Income/ [Loss] before tax [38.650m] vs. [62.400m] -8.061%
H1 Income/ [Loss] for the period from continuing operations [39.556m] vs. [64.555m] -38.725%
EPS [0.19] vs. [0.31] -38.710%
Total Equity 398.111m vs. 492.114m -19.102%
Cash and cash equivalents at the end of the period 75.987m vs. 118.727m -35.999%
No interim dividend
COMMENTS ON THE RESULTS
The Company focused on aligning its business to its key revenue drivers by eliminating non viable product lines in the fiscal year in order to create a more sustainable business. Although these actions resulted in a decline in sales by 29%, they resulted to an improved gross margin to the benefit of the Company. The Company also kept a clear focus on cost minimization by implementing various cost cutting initiatives that enabled the Company to manage its expenses. The Company shed off KES.26M in overhead costs through various cost reduction initiatives, a reduction of 26% from prior year.
Although Eveready recorded a loss before tax of KES.39M, this was an improvement of 38% from last years loss of KES 62M.
DIVIDEND
The Company does not recommend the payment of an interim dividend.
OUTLOOK
We have made significant progress in Q2 of FY 2019 in implementing key turn around programs which is facilitating the Companys recovery. We have re aligned our operations and our product portfolio and the Company is now well positioned to sustain its operations using internally generated revenues.
We will now focus on achieving profitable growth (driven by revenue and margin maximization), and become more customer focused and agile which will facilitate the Companys recovery.
Eveready E.A. Ltd FY 2018 results through 30th September 2018 vs. 30th September 2017
FY Sales 251.720m vs. 338.931m -25.731%
FY Cost of sales [220.108m] vs. [251.610m] -12.520%
FY Gross profit 31.612m vs. 87.321m -63.798%
FY Other income 15.220m vs. 49.546m -69.281%
FY Gain on disposal of assets 4.302m vs. 452.468m -99.049%
FY Overhead Expenses [217.510m] vs. [330.465m] -34.181%
FY Finance costs [0.455m] vs. [9.736m] -95.327%
FY [Loss]/ Profit before tax [166.831m] vs. 249.134m -166.964%
FY [Loss]/ Profit for the year from continuing operations [111.674m] vs. 266.081m -141.970%
FY [Loss]/ Profit for the year from discontinued operations [4.721m] vs. 1.092m -532.326%
FY [Loss]/ Profit for the year [116.395m] vs. 267.173m -143.565%
[Loss]/EPS Basic and diluted [0.55] vs. 1.27 -143.307%
Total equity 446.514m vs. 558.217m -20.011%
Cash and cash equivalents at the end of the year 68.566m vs. 245.827m -72.108%
No dividend
Conclusions
Striking an upbeat note in the commentary not sure why.
Eveready E.A. PLC H1 2018 results through 31st March 2018 vs. 31st March 2017
H1 Sales 149.776m vs. 241.594m -38.005%
H1 Cost of sales [120.948m] vs. [168.854m] -28.371%
H1 Gross profit 28.828m vs. 72.740m -60.368%
H1 Other income 9.755m vs. 33.626m -70.990%
H1 Gain on disposal of Property, Plant and Equipment 0.472m vs. 397.310m -99.881%
H1 Overhead expenses [101.378m] vs. [142.340m] -28.778%
H1 Income/ [Loss] before tax [62.400m] vs. 351.114m -117.772%
H1 Income/ [Loss] for the period from continuing operations [64.555m] vs. 364.973m -117.688%
EPS [0.31] vs. 1.74 -117.816%
Total Equity 492.114m
Cash and cash equivalents at the end of the period 118.727m
No interim dividend
Eveready E.A. Ltd FY 2017 results through 30th September 2017 vs. 30th September 2016FY Sales 338.931m vs. 553.311m -38.745%FY Cost of sales
[251.610m] vs. [425.016m] -40.800%FY Gross profit 87.321m vs. 128.295m
-31.937%FY Other income 49.546m vs. 4.872m +916.954%FY Gain on disposal of
assets 452.468m vs. FY Overhead Expenses [330.465m] vs. [296.782m]
+11.349%FY Finance costs [9.736m] vs. [72.368m] -86.547%FY Profit/ [Loss]
before tax 249.134m vs. [218.962m] +213.780%FY Profit/ [Loss] for the year
from continuing operations 266.081m vs. [171.824m] +254.857%FY Profit/
[Loss] for the year from discontinued operations 1.092m vs. [34.681m]
+103.149%FY Profit/ [Loss] for the year 267.173m vs. [206.505m]
+229.378%EPS Basic and diluted 1.27 vs. [0.98] +229.592%Total equity
549.370m vs. 486.578m +12.905%
Cash and cash equivalents at the end of the year 245.827m vs. [0.731m]No dividend
Company Commentary
During the Year under review we experienced a significant downturn in the economy following a prolonged period of electioneering insecurity in
certain segments of the market, weak credit growth, creeping inflation and drought. These factors together with our status as a new entrant in the battery business resulted to a decline in revenues to 339m representing 39% of prior period performance.
Sale of our Nakuru property which was finalised in the year under review led to a gain of 452m from the sale proceeds. Proceeds were used to clear the Companys debts and provide working capital to support the business.
Dividend of 1 shilling a share.
Conclusions
Without the disposal they would have booked a loss. They have piled a great deal back into the business a business in which they have not made a profit in for years.
Eveready E.A. PLC H1 2017 results through 31st March 2017 vs. 31st March
2016
H1 Sales 241.594m vs. 300.015m -19.473%
H1 Cost of sales [168.854m] vs. [244.732m] -31.005%
H1 Gross profit 72.740m vs. 55.283m +31.578%
H1 Other income 33.626m vs. 0.783m +4,194.508%
H1 Gain on disposal of land 397.310m vs.
H1 Overhead expenses [142.340m] vs. [116.457m] +22.225%
H1 Finance costs [10.222m] vs. [30.500m] -66.485%
H1 Income/ [Loss] before tax 351.114m vs. [90.891m] +486.302%
H1 Income/ [Loss] for the period from continuing operations 364.973m vs.
[58.913m] +719.512%
EPS 1.74 vs. [0.28] +721.429%
Total Equity 848.880m vs. 486.578m +74.459%
Cash and cash equivalents at the end of the period 483.643m vs. [0.3914m]
Special Dividend 1.00/share
Commentary
completed sale of Nakuru land which has enabled us to clear our debts and
invest additional funds into our business. This sale resulted in a gain on
disposal of 397.3m
Special Dividend 1
Conclusions
Dividend worth 37.735% on the share price
FY Earnings through 30th September 2016 versus through 30th September 2015
FY Sales 553.311m vs. 1.124582b -50.799%
FY Cost of sales [425.016m] vs. [905.915m] -53.084%
FY Gross profit 128.295m vs. 218.667m -41.329%
FY Other income 4.872m vs. 75.929m -93.583%
FY Overhead expenses [296.782m] vs. [405.734m] -26.853%
FY Finance costs [72.368m] vs. [50.267m] +43.967%
FY Loss before tax [218.962m] vs. [161.405m] +35.660%
FY Loss for the year from continuing operations [171.824m] vs. [182.075m]
-5.630%
FY Loss for the year from discontinued operations [34.681m] vs. [19.434m]
+78.455%
FY Loss for the year [206.505m] vs. [201.509m] -2.479%
EPS [0.98] vs. [0.96] -2.083%
Total Equity 486.578m vs. 682.489m -28.705%
Cash cash equivalents at the end of the year [0.731m] vs. [285.519m]
+99.744%
No dividend
Company Commentary
Company experienced a challenging out of stock situation occasioned by lack
of supplies from our global supplier of carbon zinc and alkaline batteries
which adversely affected supply for a considerable period during the Year
under review.
-51% decline in FY Revenues
closed operations in Uganda
Sell the Nakuru property in order to clear the debt and provide sufficient
working capital to support the distribution business.
No Dividend
Conclusions
Should exit the battery business and return the surplus [land sales] to
shareholders
Eveready East Africa Limited Full Year through 30th September 2015 vs 30th
September 2014 (restated)
FY Revenue 1.132136b vs. 1.216580b -6.94%
FY Operating profit 11.872m vs. 54.811m -78.340%
FY Plant closure costs [6.702m] vs. [246.342m] -94.279%
FY Finance costs [104.082m] vs. [56.483m] +84.271%
FY Loss for the year [77.710m] vs. [177.590m] -56.242%
FY Other comprehensive income 665.533m vs. 0.107m
FY Total comprehensive profit/[Loss] per year 587.823m vs. [177.453m]
+431.226%
FY EPS 2.80 vs. [0.85] +429.412%
Total assets 1.511665b vs. 0.930057b +62.535%
FY Net cash generated from operating activities 1.196m vs. [146.233m]
+100.818%
FY Net cash from investing activities 56.213m vs. [11.134m] +6204. 877%
FY Net cash from financing activities [57.083m] vs. [2.364m] +2314.679%
FY Total cash movement for the year 0.326m vs. [159.731m] -100.204%
FY Total cash at the end of the year [285.519m] vs. [285.845m] -0.114%
Conclusions
revalued their Nakuru Property
FY Earnings through September 2014 versus FY through September 2013
FY Turnover 1.216580b versus 1.428278b
Plant Closure Cost [246.342m]
FY Profit Before Taxation [248.013m] versus 60.113m
FY Tax Charge 70.424m versus [15.021m]
FY Profit after Tax [177.589m] versus 45.092m
FY EPS [0.85] versus 0.21
Company Commentary
A Deliberate decision made to reposition our Business in Tanzania that
resulted in a decline in revenue from that market.
Extraordinary one off costs relating to the plant closure amounting to 246m
Looking to unveil plans for real estate development in Nakuru
Conclusions
More of a Real Estate Play than a Battery Play now.
FY Earnings through September 2014 versus FY through September 2013
FY Turnover 1.216580b versus 1.428278b
Plant Closure Cost [246.342m]
FY Profit Before Taxation [248.013m] versus 60.113m
FY Tax Charge 70.424m versus [15.021m]
FY Profit after Tax [177.589m] versus 45.092m
FY EPS [0.85] versus 0.21
Company Commentary
A Deliberate decision made to reposition our Business in Tanzania that
resulted in a decline in revenue from that market.
Extraordinary one off costs relating to the plant closure amounting to 246m
Looking to unveil plans for real estate development in Nakuru
Conclusions
More of a Real Estate Play than a Battery Play now.
FY Earnings through September 2013 versus FY through September 2012
FY Turnover 1.428278b versus 1.374789b
FY PBT 60.432m versus 68.914m
FY PAT 45.411m versus 70.064m
No Dividend Payment
FY EPS 0.22 versus 0.33
Company Commentary
+11% growth in Domestic Revenues
-35% Decline in Export Revenues
Level of Borrowing -37%.
Unrealised FX Loss of 13m versus +51m Gain Previous FY
We do believe that the Initiatives being implemented over the next two
years will put the business firmly on a sustainable growth Trajectory.
Conclusions
At a Market Cap of 567m and $6.593m I would have thought the Net Asset
Value is some way North of that.
FY Through September 2012 versus FY through September 2011
Turnover 1.374789b versus 1.374847b
Finance Costs +817 versus [129.501m]
FY PBT 70.084m versus [123.994m]
FY Earnings Per Share 0.33 versus [0.59]
No Dividend
Conclusions
The improving Narrative was signalled at the Half Year Mark. Basically,
Eveready aggressively paid down Debt.
Swot Analysis 6 Months through March 2012 versus six months through March
2011
Turnover 714.674m versus 659.672m
Finance Costs +41.002m versus -38.304m Company citing 64m in Exchange Gains
21% Reduction in Borrowings over the Period
Profit Before Tax 66.972m versus -72.223m
Profit After Tax 44.48m versus 53.989m
Earnings Per Share 0.21 versus -0.26
Conclusions
Much better Results than I had expected but the Sweetener was around the
64m in Exchange Gains.
Swot Analysis FY Sep 2011 versus FY Sep 2010
Turnover 1.374847b versus 1.635105b -16%
PBT -173.208m versus +14.746m
PAT -123.994m versus +8.703m
EPS -0.59 versus 0.04
No Dividend
Conclusions
I have no Idea how Management is seeking how to dig themselves out of this
Hole.
Swot Analysis
Turnover 1.635b versus 1.645b
Full Year Sep 2010 versus Sep 2009
EPS 0.04 versus 0.13
Finance Costs 57.887m versus 26.664m
Comments on Results
Illicit Dry Cell Trade.
Zinc +43%
Depreciation of Kenya Shilling
Conclusions
They had already warned |
