Listed investments firm Carbacid Investments has announced an 18 percent after-tax profit jump in its half-year results.
The results published Wednesday indicate that Carbacid Investments Limited (CIL) net profit for the half-year ended 31 January 2021 accelerated to Kshs 210 million up from Kshs 178 posted for the same period last year.
Despite the challenges posed by the Covid-19 pandemic in the trading period under review, the firm whose main operating subsidiary Carbacid (CO2) Limited is the region’s leading producer of food-grade carbon dioxide enjoyed a total turnover of Kshs 450 million up from Kshs 353 million.
The turnover growth represented a 27% jump signifying increased sales of natural food-grade carbon dioxide.
Buoyed by higher sales and process improvements to boost efficiency, its operating profit jumped 28% to Kshs 178 million, up from Kshs 139 million despite increasing operational and regulatory compliance costs.
While commenting on the trading performance, CIL Chairman Amb Dennis Awori said the firm had stepped up efforts to enhance its returns on investments. As part of the measures, he said that the firm is pursuing a growth strategy focusing on expansion into additional business lines.
Such expansion, he added, will be pursued through both organic growth in combination with acquisitions that can complement CIL’s existing portfolio. CIL has placed a bid to acquire up to 100%of BOC Kenya Plc’s ordinary shares.
Following the Capital Markets Authority (CMA) approval, the offer period for acquiring the shares from BOC Kenya minority shareholders is already underway and closes on 6 April 2021.
“The half-year trading results are a clear testimony of a growing business, and we will continue to aim to look for new opportunities enhance the Group’s value,” Amb Awori said.
The combination of BOC Kenya’s product portfolio and services with Carbacid’s existing business, he noted, is an excellent match that will, in the longer term, position the enlarged group to become the East and Central African regional supplier of choice for carbon dioxide gas and related products, industrial, medical, special gases, related equipment and services.
“The enlarged group will also provide greater opportunities for employee development, advancement and growth for both BOC and the CIL Group,” Amb Awori said.