Listed food-grade carbon dioxide and dry ice maker, Carbacid Investments, grew its half-year profit 6.9% to KSh 464.96 million for the six months to January 31, 2026, despite core operating momentum softening.
- •Turnover rose 3.8% to KSh 976.35 million, but operating profit slipped 2.2% to KSh 379.16 million and gross margin narrowed to 64% from 65%.
- •The earnings lift was driven largely by KSh 106.20 million in equity revaluation gains, equal to roughly 17% of profit before tax.
- •Carbacid’s half-year revenue has more than doubled over the past decade and peaked in 2024 above KSh 1.0 billion, when operating profit reached about KSh 488 million.
Since then, growth has moderated, even as the balance sheet expanded to KSh 6.59 billion, driven largely by investments in bonds and equities.
Management said revenue growth was anchored in stronger demand across East African markets. That strength was partly offset by subdued activity in Southern Africa, where seasonal factors and increased local supply weighed on volumes. The resulting sales mix pressured margins at a time when the group was also stepping up spending. Administration costs rose 15%, reflecting deliberate investment in customer retention and the systems needed to support longer-term strategy.
Lower interest rates also influenced the results. Finance income declined 3.6% to KSh 132.95 million as returns on bonds and deposits eased. This was partly cushioned by lower borrowing costs, as Carbacid continued to repay debt raised in earlier years to fund plant and logistics investments. Profit before tax still rose 6.9% to KSh 619.95 million, though the quality of that growth shifted further toward non-operating items.
HY 2026 vs HY 2025 snapshot
| Metric | Jan 2026 | Jan 2025 | YoY |
|---|---|---|---|
| Turnover | 976.35 Mn | 940.61 Mn | ▲ +3.80% |
| Operating profit | 379.16 Mn | 387.67 Mn | ▼ −2.19% |
| Profit after tax | 464.96 Mn | 434.93 Mn | ▲ +6.90% |
| Revaluation gains | 106.20 Mn | 39.47 Mn | ▲ +169.07% |
| Operating cash flow | 291.88 Mn | 385.27 Mn | ▼ −24.24% |
| Gross margin | 64% | 65% | ▼ −1pp |
Cash generation was weaker during the period. Operating cash flow fell 24.2% to KSh 291.88 million, while dividend payments of KSh 475.83 million exceeded cash generated from operations. Cash balances declined to KSh 88.13 million at the end of January, down from KSh 118.58 million six months earlier. The board did not declare an interim dividend, indicating that any payout decision will be made after the full-year results.
