NAIROBI, KENYA, MAR 16 ― Carbacid Investments (Plc) has recorded a near flat profit for the first six months of its financial year, blamed on lower demand of its products in the local market.
The Nairobi Securities Exchange listed carbon dioxide manufacturer recorded a profit after tax of Ksh164.9 million in the six months ended January 31, 2018.
This is a marginal increase from Ksh164.4 million in the same period the previous financial year.
The low demand in the product ate into the company’s turnover which dropped six per cent to Ksh301.6 million, from Ksh322.2 million the previous year.
“Turnover for the first six months of the year reduced compared to the same period last year due to lower demand in local markets. Various initiatives have been taken to increase sales despite the current economic conditions in the region,” the firm said in its unaudited half year results released on Friday.
The company has also blamed increasing oil prices in the market and related fuel costs adjustments for negatively impacting on its electricity and transport costs, resulting in higher operating costs.
Operating profit was at Ksh135.4 million, a drop from Ksh179.4 million the previous year.
Its management has however said the group continues to look for efficiencies and improvement opportunities.
During the period, the firm’s administrative expenses shot to Ksh48.8 million from Ksh40.6 million.
Total assets value rose to Ksh3.27 billion, up from Ksh3.02 billion.
Meanwhile, the company has termed regulatory changes arising from mining royalties and County government’s demands and expectations as challenges which “continue to pose new challenges to business and operations.”
The firm produces natural, certified food grade (99.99% purity) carbon dioxide for the beverage and brewery industries, where it is used to carbonate water, soft drinks and alcoholic beverages. This falls under its industrial carbon dioxide supplies.
The firm also produces medical carbon dioxide, dry ice and offers cylinder testing and verification services.