The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Clay products maker, Uganda Clays Limited, has reported a 292% increase in net profit to Shs2.8bn in the first six months of 2021.
Its Managing Director, Reuben Tumwebaze says, the impressive performance is a turnaround from a loss position of Shs1.4bn that was incurred in 2020 in the same period.
The significant improvement in the performance of the entity is majorly attributed to improved efficiencies in production and an increase in sales volume of 34% to Shs17.5bn for the period compared to Shs13bn in the year 2020.
“Despite a challenging first half of the year, mainly from the COVID-19 pandemic that has affected the economy and many businesses, the company demonstrated resilience, producing positive results,” Tumwebaze said.
He added, “We have also made significant strides towards a commitment to implementing a robust strategy in the current economic environment.”
During this period, UCL gross profit increased by 190% to Shs7.4bn from Shs2.5bn in 2020, majorly driven by efficiencies and continued cost management measures put in place resulting in controlled production costs.
Total Revenue increased by 34% to Shs17.5bn for the period compared to Shs13bn in the year 2020, notably due to improved efficiencies in production and an increase in sales volume.
Overhead costs increased by 12% to Shs5.4bn from Shs4.8bn driven by increased funding of company operating expenditure initiatives for the period.
Total assets increased by 13% to Shs70.9bn, mainly attributable to deliberate investment in the company’s two plants at Kajjansi in Kampala and Kamonkoli in Mbale, Eastern Uganda.
