Carbacid earnings jump 18pc on rise in carbon dioxide sales

Carbacid Investments posted a 17.7 percent net profit growth in the half-year ended January, helped by increased sales of carbon dioxide.

The company’s net earnings in the six-month period stood at Sh210.4 million compared to Sh178.6 million the year before.

Sales of carbon dioxide, which is used to make fizzy beverages among other applications, jumped 27.4 percent to Sh449.6 million from Sh352.9 million amid market share gains.

The company sold 8.9 million kilogrammes of the commodity in the review period, representing a 21 percent increase from 7.4 million kilogrammes a year earlier.

“Despite increasing competition and the impact of the pandemic the group managed, by being proactive to capture new markets and continuously engaging in process improvements,” Carbacid said of the sales growth.

“This resulted in the operating profit increasing by 28 percent compared to the corresponding period in the previous year, despite increasing operating and regulatory costs.”

Carbacid’s investment division was largely stable. Finance income, including interest on government bonds, rose to Sh97.1 million from Sh92.7 million.

Its portfolio of listed equities showed a gain of Sh1.2 million, down from Sh3.1 million.

Carbacid has made a bid to acquire medical and industrial gases manufacturer BOC Kenya for Sh1.2 billion in a deal it says will diversify its gas manufacturing business by adding non-competing products.

“The offer by Carbacid Investments plc and Aksaya Investments LLP to purchase the shares of BOC Kenya Plc closes on April 6, 2021. Having received all the necessary approvals, the offer document and the form of acceptance have been sent to shareholders of BOC Kenya Plc,” Carbacid said.