Uganda Clays Limited said George Inholo, the clay building products manufacturer’s managing director, its head of production, and head of human resources and support services are leaving the company “by mutual consent”. No reason was given for their departure.
Jacqueline Kiwanuka, the company’s head of finance, will replace Mr Inholo in an acting position, Uganda Clays said in a press statement. The company said that it is “immediately commencing a recruitment process to fill” the positions.
The statement said the top executives left the company on Friday, 6 March.
“The board conveys its assurance that measures have been put in place to ensure that the company continues to operate normally,” said the statement, signed by Martin Kasekende, the board chair.
Mr Inholo joined Uganda Clays as managing director in August 2014 , following 15 years at Unilever Uganda, Rwanda and Burundi, where he ultimately became country manager.
Mr Inholo’s appointment came at a time the company was struggling to turn a profit amidst high financing costs, stiff competition, and high operational costs of a second plant in Kamonkoli, Budaka district.
Uganda Clays posted losses of Shs3.9bn and Shs5.1bn in 2013 and 2014, respectively. But a turnaround strategy initiated by Mr Inholo cut costs through retrenchment and reducing production costs; the cost of sales fell 8.5% in 2015, his first full year charge, while administrative costs declined 4.4%. Revenue increased at a faster rate compared to the previous year, and the company’s net loss fell to Shs1.2bn.
The company returned to profitability in 2016 , reporting net income of Shs2.3bn, and also paid out a dividend to shareholders for the first time since 2007. It has been profitable since, with net profit rising 0.9% to Shs2.3bn in 2017 and falling 17% to Shs1.9bn in 2018 . The decline in profits in 2018 was due to a rise in production costs and high fuel prices, which led to an increase in distribution costs.
Uganda Clays has not yet released financial results for 2019.