Carbacid offices. [Photo/businessdaily.co.ke]Carbacid Investment company that sales carbon dioxide and also offers other investment services has seen its gas sales drop by 38.4 per cent in the year ending December 2017.
The latest report from the NSE listed company shows that its gas division recorded Sh589.3 million representing a 29.1 per cent decline compared to the same period last year and 38.4% drop when it made sh.956.8 million at its peak in 2013.
The report says that the wide margin is attributed to the increased competition from alcohol manufacturers that have been producing the same product.
“Our markets have remained challenging during the financial year that ended on 31st July 2017, which was impacted by new competition from alcohol based manufacturers of carbon dioxide as well as prolonged drought,” Carbacid said in the statement.
The company therefore is reverting to customers who only require pure carbon dioxide in order to improve its fortunes in the year 2018.
“Our strategy as always is to ensure that we reliably deliver high quality products free of any alcohol base, which is a particular requirement of a large segment of the market,” the report reads further.
Carbacid has been selling its gas to mostly food and beverage companies that have been using the product either as a preservative or to improve taste.