The Cipla Quality Chemical Industries Limited (CiplaQCIL) is now banking on Global Fund’s order of $6.7 million (Shs24.7b) to offset the Shs26.5 billion sale reduction from Zambia. Cipla Quality Chemical Industries’ half year results show the company’s gross profit dropped to Shs23.466 billion, down from Shs32.552 billion in the same period last financial year. This means gross profit decreased by Shs9.1 billion, reflecting a change in the product portfolio mix, increasingly competitive conditions and price reduction.
The Cipla Quality Chemical Industries Limited (CiplaQCIL) is now banking on Global Fund’s order of $6.7 million (Shs24.7b) to offset the Shs26.5 billion sale reduction from Zambia.
The Global Fund is a partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. As an international organisation, the Global Fund mobilises and invests more than $4 billion (Shs14.7 trillion) a year to support programmes in more than 100 countries.
Global Fund is one of CiplaQCIL’s customers. However, in the last financial year, CiplaQCIL suffered a drastic decline in its revenue following Global Fund’s suspension of funding programmes in Uganda.
Speaking during the fact behind figures meeting held at its headquarters in Luzira on Monday, the chief executive officer of CiplaQCIL, Mr Nevin Bradford said they registered a rebound in orders of medicines from Global Fund after the agency lifted the suspension of funding programmes in Uganda.
Mr Nevin said they are expecting more revenues from medicine sales to Global Fund in the second half of this financial year ending on March 31, 2020.
The government of Zambia has been CiplaQCIL’s prime customer, bringing in $10 million annually based on a Memorandum of Understanding. However, due to economic difficulties, Zambia has not been paying CiplaQCIL.
Cipla’s management is still following up to have the debt paid.
CiplaQCIL was listed on Uganda Securities Exchange on September 17, 2018, at a price of Shs256.5 and traded up to Shs290 on the first sale of its listing day before falling to Shs261 at the close of the day. Since then, CiplaQCIL price has reduced to the current price of Shs127.