The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Uganda Clays Ltd has reported a net loss of Shs 4.95 billion for the year ending December 31, 2024, driven by increased production costs and finance expenses.
This marks a deepening of the company’s loss, compared to Shs 2.85 billion in 2023, despite a 4% increase in revenue to Shs 31.6 billion. The growth in sales was attributed to upgraded equipment and stronger market demand, though these gains were offset by rising input costs and significant finance charges.
Last year, Uganda Clays saw its gross profit fall by 5% to Shs 8.3 billion, largely due to a rise in production costs. The company’s finance expenses surged by Shs 1.4 billion, primarily due to accrued interest on a loan from Uganda’s National Social Security Fund (NSSF).
However, Uganda Clays showed some resilience, improving its cash reserves to Shs 333 million, up from Shs 250 million in 2023, thanks to stricter collection efforts. But in light of the ongoing losses, no dividend has been proposed for the 2024 financial year, with any future decision to be made at the company’s Annual General Meeting on June 27.
The company has continued its long-term investment strategy, focusing on expanding its production capacity. With plans to open a new plant in 2025, Uganda Clays remains optimistic about its future growth prospects, despite the financial setbacks.
The firm has also been prioritizing its capacity expansion, including the installation of new machinery, which aims to improve efficiency and product quality.
