Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Carbacid profit up 7pc as competition increases
The Carbacid factory based in Industrial Area, Nairobi. Carbacid Investments lifts half-year profit to Sh465 million despite rising competition and softer income from bonds.
Carbacid Investments Plc posted a 6.9 percent jump in net profit to Sh464.96 million in the six months ended January 2026, lifted by higher gains from equity investments even as the listed carbon dioxide manufacturer flagged rising competition in its export markets.
The profit increase came despite softer income from fixed income investments and a modest rise in sales, underscoring the growing role of non-operational gains in supporting the company’s bottom-line.
The firm’s sales grew 3.8 percent to Sh976.3 million, up from Sh940.6 million in the similar period a year earlier in what it attributed to market growth in East Africa as demand in Southern Africa remained subdued due to seasonal patterns and increased local supplies.
Gains from the revaluation of equity investments more than doubled to Sh106.2 million up from Sh39.5 million a year earlier, cushioning the impact of lower finance income and higher operating costs.
In contrast, income from fixed income assets such as government bonds and deposits declined to Sh132.95 million from Sh137.9 million as interest rates fell during the period.
The easing interest rate environment reduced returns from Carbacid’s fixed income portfolio, reversing the tailwind the company had enjoyed in prior periods when higher rates boosted earnings from bonds and deposits.
“Profit after tax increased by seven percent compared to the same period last year, driven by revaluation gains on equity investments. Interest rates have continued to decline in the period, thus impacting on the earnings of the investments in bonds and deposits,” wrote the company.
Carbacid, whose carbon dioxide is used mainly by manufacturers of alcoholic beverages and soft drinks, further warned that the markets it serves have seen new entrants, intensifying pressure on pricing and customer loyalty.
“The markets that Carbacid serves have seen new entrants coming in and management is addressing the resulting challenges by enhanced customer experience and delivery commitment. The board continues to look at options to grow the business in new areas and to increase shareholders' value,” the firm said.
Carbacid reported that during the period under review, administration costs climbed 15 percent, reflecting what the board described as deliberate spending decisions aimed at strengthening customer retention and supporting long-term strategic initiatives.
“Administration costs increased by 15 percent driven by Carbacid's deliberate decisions to align with the strategy around customer retention and the need to support the long-term strategy enablers,” the company said.
