Carbacid has posted a 23% jump in net profit for the financial year ended 31st July 2020 to KSh324.7 million from KSh264.6 million in the previous year. The company whose core business is the production and marketing of carbon dioxide gas, is one of the few listed companies to post an increase in the full-year net profit this year.
The company’s revenue grew by 8.3% to KSh682.9 million from KSh630.5 million booked in the same period in 2019. Its expenses remained under control in the period under review. Net cash generated from operating activities amounted to KSh389 million.
The bear market at the Nairobi Securities Exchange led Carbacid to record a KSh39 million unrealized loss from equity investments.
Carbacid supplies carbon dioxide gas to medical facilities, food manufacturers, and other industries. The company is confident that future performance will be good even as competition in carbon dioxide production field stiffens. In this year’s annual report, the firm’s chairman Dennis Awori stated, “Carbacid has the largest quality production capability in the region with two production sites and a modern delivery fleet that is able to deliver to customers efficiently all over Eastern Africa.”
The company continues to invest in new plant and equipment such as new tankers, while disposing off inefficient assets to ensure maximum returns from its investments.
Given the good financial performance in the year that just ended, Carbacid directors recommend a final dividend of KSh0.70 for every ordinary share, similar to the dividend payout in the previous year.