UCL posts a UGX5.9 billion profit

Uganda Clays Limited, the leading manufacturer of quality baked clay products has announced a dividend pay-out of UGX1.5 per share that has been approved by the shareholders.

This was during the annual general meeting which revealed that the company was back to a positive profitability trend.

The Board Chair, Uganda Clays, Martin Kasekende attributed the run of excellent performances to both internal and external reforms.

“Despite the difficult times in the year 2021, that is to say, the pandemic and lockdown, we have thrived and continued to see good performance. This is because of the strong good performance culture we build within our organization.”

 “ I would like to greatly appreciate our staff for their effort, especially during the lockdown. Without our staff, the company would not be this far. I would also want to thank our customers, without you, there would not be Uganda Clays.” He added

While announcing the performance results, the Chief Finance Officer, Jones Muhumuza, revealed that the company began a recovery in 2021.

“In 2021, we had positive financial metrics, our revenue increased by 36.7billion, 24% better than in 2020, and our earnings before tax increased by 16%. Our net profits increased by 21% representing 5.9billion and our total assets by 8% indicating 74.5 billion.”

UCL, Managing Director, Reuben Tumwebaze noted that, despite the year being marked by unpredictable market conditions, the company had delivered better results that 2020 owing to the continuous improvement in its safety record, increased distribution channels, and excellent progress with major projects.

In light of that, it was proposed that the remuneration of directors be improved on grounds that, there was a reasonable growth in revenues projecting 42billion shillings and sales growth targeting 14%, expected profitability growth, growth in company expenditure and that the current remuneration was last fixed in 2017 which has since been affected by the depreciating shilling coupled with an increase in fuel prices and the necessity for data expenditure to facilitate virtual meetings.

“The directors have played a great role in the improvement of the company's performance. Their remuneration was last fixed in 2017, so an increment in their remuneration would be great motivation for them” said, Matthias Nalyanya, the company secretary.

Ahead of the dividend pay-out, it was proposed that dividends be paid out through mobile money which would require that shareholders update their contacts and bank account details in the shareholder registers at the Uganda Securities Exchange offices.

Meanwhile, the company sought to rectify a misconception that their roofs and tiles were for rich people with the fact that clients can pay in installments, even as low as 5000 Shillings. Also in the pipeline is partnering with the National Social Security Fund (NSSF) to make sure that all employees get a discount.

Additionally, in staying relevant in the community, four women were helped to recover their businesses that were affected due to the lockdown, partnered with local schools to empower their female students as well as worked with other clay manufacturers, ten so far, to ensure quality clay products in Uganda and the world.