Carbacid Investments half year profit plunges 36% to Sh105.3 million

Listed food-grade carbon dioxide producer Carbacid Investments has reported a 36% slump in profit for the half year ended January 31, 2019 to Ksh105.3 million from the Ksh164.9 million it posted at the same period the previous year.

The company attributes the profit slump to a substantial drop in the value of investments at the Nairobi Securities Exchange (NSE) and the Dar es Salaam Stock Exchange (DSE) which have fallen Ksh48 million vis-à-vis the previous year when it gained Sh6 million.

During the period under review, Carbacid posted 1% increase in its turnover to Ksh304.8 million from the Ksh301.5 million it posted the previous half year.

Carbacid’s operating profit also shrunk 10% to Ksh121.8 million from Ksh135.4 million on increasing operating costs that are influenced by external drivers.

“Mining royalties and demands by county governments continue to put more pressure on operations and margins,” The company’s board said in the unaudited consolidated results.

{Read: Zambian envoym Brenda Muntemba, dies in Nairobi}

As a result, the company has now been forced to source for alternative markets to keep up high profit margins.

{See also: Too little too late: Governors react to ravaging drought}

Following the profit plunge, Carbacid now joins the bandwagon of listed companies that have issued profit warnings. The company is expected to declare its full year results anytime after July, the last month in the company’s full financial year.