Reuben Tumwebaze, Uganda Clays Limited MD Uganda Clays Limited (UCL), the manufacturer of baked clay building products on Wednesday announced that the company posted impressive results for the half year 2021 with a net profit of Shs 2.75 Bn.
According to the Managing Director, Reuben Tumwebaze, the impressive performance is a turnaround from a loss position of Shs 1.4 Billion 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 Shs 17.5 Billion for the period compared to Shs 13 Billion in the year 2020,” he said. “Despite a challenging first half of the year, mainly from the COVID-19 pandemic that has affected the economy and many businesses, Uganda Clays Limited (UCL) demonstrated resilience, producing positive results as highlighted by the first 6 months performance. We have also made significant strides towards a commitment to implementing a robust strategy in the current economic environment,’’ Mr. Tumwebaze added.
During this period, UCL gross profit increased by 190% to Shs 7.4Billion from Shs 2.5 Billion in 2020, majorly driven by efficiencies and continued cost management measures put in place resulting in controlled production costs.
The company overheard costs increased by 12% to Shs 5.4 Billion from Shs 4.8 Billion driven by increased funding of company operating expenditure initiatives for the period.
“As a result, profit after tax for the period increased by 292% to Shs 2.8 Billion from a loss position of Shs 1.4 Billion in 2020 and total assets increased by 13% to Shs 70.9 Billion, mainly attributable to deliberate investment in our two plants at Kajjansi and Kamonkoli,” Tumwebaze said.
