Carbacid Investments plc, a holding company focused on carbon dioxide production through its subsidiary Carbacid (CO2) Limited, announced a 17.9% increase in net profit to Sh485.16 million for the six months ended January 2024.
This growth is attributed to a 26.3% rise in sales to Sh1.08 billion, driven by expansion into new regional markets for liquid carbon dioxide in East and Southern Africa.
However, the Nairobi Securities Exchange-listed firm said operating profit and expenses increased by nearly a third despite rising input costs, higher input costs, and debt servicing.
“Operating cost increased by 27 per cent driven by increased costs of various inputs such as fuel, electricity and spare parts. Inflation, higher borrowing interest rates and currency fluctuation have also contributed to the increased costs,” said Carbacid.
Despite rising costs, Carbacid remains profitable, though the board expresses concerns about ongoing economic challenges.
“The US dollar shortages in some regional markets continue to impact demand and the business continues to establish means of coping. The Board continues to look at options to grow business levels in this turbulent environment,” said Carbacid.
