Uganda Clays Limited posts a net profit of UGX 5.92 Billion
- Total Revenue increased by 24% to UGX 36.7Billion for the period compared to UGX 29.7 Bn in 2020
- Gross Profit increased by 27% to UGX 17.2 Billion from 13.5bn in 2020
- Total Assets increased by 18% to 74.5Billion
Uganda Clays Limited (UCL) has posted a net profit of 5.92 Billion in full-year results for 2021.
The leading manufacturer of quality baked clay building products attributes the positive trend in growth to their long-term strategy implementation, giving precedence to people, customer service-driven philosophy, processes, and being results-driven.
Uganda Clays Managing Director, Rueben Tumwebaze Byaruhanga revealed that the company had made internal reforms that have revived performance in the past two years.
“Despite the year being marked by unpredictable market conditions, the company has delivered better results than 2020. We have improved and continue to improve our safety record, increased our distribution channels within the country, and made excellent progress with our major projects”, Byaruhanga remarked.
The clay products manufacturing company boasts of a net profit that has improved by 21% to 5.9Bn from 4.9Bn in 2020.
Last year 10.5bn shillings were spent on capital expenditure including the revamping of the Kanjansi plant which has increased the turnaround time by installing a large capacity chamber drier.
Previously, the plant at Kanjansi was producing 300,000 tiles per month to 600,000 tiles to date while the one at Kamonkoli, has increased production from 200,000 tiles per month to 400,000 tiles per month following the acquisition of a new kiln coupled with a shift from natural drying to artificial methods.
As of today, 85,000 tiles are produced per day with the new kiln as well as 30,000 at Kamonkoli adding up to 2.4 million tiles per month.
Marion Muyobo, the non-Executive Director on the Board explained that some of the milestones achieved in the past two years have raised optimism among shareholders.
According to Jones Muhumuza, the head of Finance, the proposed dividend per share for 2021 is 1.5 shillings, an increment from 1.35 shillings in 2020. At its peak the share price was 60 shillings before it plunged to 21 shillings today.