At a time many companies in Kenya are registering massive losses as a result of the Covid-19 pandemic, Carbacid has reported a 22 percent jump in net profit for the year ending July 2020.
The results announced by the company’s management make it one of the few companies to report double-digit growth in earnings amid Covid-19 pandemic. Many others including giants like Safaricom have reported a drop in profits.
Carbacid deals with the manufacturing of carbon dioxide for beverages and brewery industries. The company says its profits for the year ended July 2020 stood at 324 million shillings, an increase from 264 million shillings at the same time in 2019.
The turnover for the company grew 8 percent to 682 million shillings for the full year ended July 31, compared to 264 million shillings in a similar period in 2019.
The Group was, however, negatively impacted by an unrealized loss on equity holdings in other listed companies of 39 million shillings. The directors have recommended to shareholders a final dividend of 70 cents per share.
“The dividend shall be payable on or about 29th January 2021. The total dividend will amount to Sh178,396,390 (2019: Sh 178,396,390),” said the company in a statement.
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The covid-19 pandemic has affected many businesses in Kenya. Many of them, especially in the SME sector have shut down rendering millions of Kenyans jobless. Companies listed at the Nairobi Securities Exchange (NSE) have registered a drop in profits.
The second wave of Covid-19 has sent shockwaves down the spines of investors at the NSE. The majority of them are scared that the wave might trigger other strict measures including lockdowns and restrictions in movements, hurting the economy further.
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In meantime, the government has continued to insist on its commitment to supporting businesses in the country to cope with the Covid-19 pandemic. This, however, seems to be yielding minimum results on the ground. More Articles From This Author
