Carbacid Investments #ticker:CARB posted a 71.4 percent rise in net profit in the half-year ended January on increased sales of carbon dioxide in the regional market.
The Nairobi Securities Exchange-listed firm made a net income of Sh360.7 million in the period compared to Sh210.4 million the previous year.
Sales increased 56 percent to Sh701.6 million as the company continued to benefit from economic expansion and development of new markets for carbon dioxide in the regional market.
“The growth is attributed principally to economic recovery in the region and new markets for liquid carbon dioxide coupled with increased efficiency and delivery promise,” Carbacid said in a statement.
Carbacid is the major producer of carbon dioxide which is used to make fizzy beverages like soft drinks, among other applications.
The company’s sales of the commodity had previously declined significantly in the wake of increased competition from alcohol manufacturers who harvest the gas as a by-product of their production process.
Carbacid has, however, responded by seeking new markets and positioning its carbon dioxide as a high quality product.
Besides higher sales, the company also gained from better returns in its investment operations. Its portfolio of listed equities was revalued at Sh24.3 million in the period, up from Sh1.2 million the year before.
Its finance income, representing interest on fixed income securities, increased to Sh110.5 million from Sh97.1 million.
Carbacid warned that rising costs could lower its margins in the second half of the year.
“Global supply chain issues, the conflict in Europe and inflationary pressures will likely result in continued high costs of fuel and other inputs, and these will remain the major challenges in the rest of the year,” the company said.Carbacid said it is still interested in acquiring BOC Kenya as the proposed transaction remains in abeyance owing to legal challenges mounted by the target’s minority shareholders.The proposed transaction, if completed, will bring together Carbacid’s carbon dioxide business and BOC’s medical and industrial gases operation to form the largest gases company in the country. emwenda@ke.nationmedia.com