Carbacid Investments has maintained a Sh2 dividend per share after posting a 12.2 percent growth in net profit to Sh1.13 billion in the year ended July 2026, helped by gains from its investments in equities.
The Nairobi Securities Exchange (NSE)-listed carbon dioxide manufacturer will pay shareholders Sh509.7 million in dividends, matching last year’s payout that came on the back of net earnings rising from Sh1 billion.
Carbacid said on Wednesday the dividend will be paid on or around December 17 to shareholders on record as of November 27.
Top shareholder Baloobhai Patel, who holds a 49.9 percent stake in Carbacid through Aksaya Investment Holdings Limited, a private investment and holding company, is in line for Sh254.34 million gross dividends.
Carbacid’s profit growth was supported by a Sh266.4 million gain from the revaluation of equity investments, more than double the Sh121.2 million recorded in the previous year.
‘Gains from the company’s investment in Nairobi Securities Exchange (NSE) and Dar-es-Salaam Stock Exchange (DSE) equities positively affected the company’s financial results,’ said Carbacid.
The company said it realised gains of Sh67 million from its NSE-listed shares, while investments in equities at the DSE generated an unrealised gain of Sh199 million.
Carbacid is an investment and holding company with three subsidiaries. The principal activities of the main subsidiary, Carbacid Limited, are mining, processing and marketing of natural carbon dioxide gas.
Its other two subsidiaries, Goodison Twenty-Nine Limited and Goodison Forty Seven Limited, are investment companies.
The gains from investment in equities cushioned the impact of a relatively flat performance in its core carbon dioxide business, where turnover rose by 0.6 percent to Sh2.11 billion from Sh2.09 billion.
Carbacid said competitive pricing and changes in market mix limited its revenue growth despite having increased sales volumes by acquiring new customers and growing purchases from existing clients in East and Southern Africa.
The firm, whose carbon dioxide is mostly used by manufacturers of soft drinks and alcoholic beverages, has been expanding its customer base across regional markets as it seeks to grow sales beyond Kenya.
Operating profit remained unchanged at Sh1.35 billion, compared with Sh1.35 billion a year earlier, while administrative expenses rose 8.4 percent to Sh477 million.
The company said transport and other related expenses increased following geopolitical tensions that prolonged shipping lead times and raised freight costs. During the review period, diesel, which is one of its key inputs, rose by more than 20 percent.
Carbacid’s operating cash flow, however, declined 14.2 percent to Sh789.8 million from Sh920.2 million, reflecting weaker cash generation despite the growth in reported profits.
The company’s cash holdings more than doubled to Sh255.3 million from Sh118.6 million, supported by lower investment spending during the year.
Carbacid also reduced its outstanding borrowings to Sh382.3 million from Sh500.6 million, strengthening its balance sheet.
The group’s three-year strategy to 2028 is focused on customer retention in core regional markets and expansion to other markets.
In 2020, the company made an offer to acquire the shares of BOC Kenya, an industrial and medical gas manufacturer that is also listed on the NSE.
However, the proposed transaction was held up for nearly five years by an appeal filed by a BOC shareholder before the Capital Markets Authority Tribunal. The appeal was dismissed for lack of merit on August 29, 2024.
The dismissal of the appeal lifted the suspension of the Carbacid offer, giving it room to complete the transaction. However, Carbacid decided to abandon the proposed transaction, citing changes in circumstances.