The shareholders of Uganda Clays Limited (UCL), the top producer of high-quality baked clay building products, have approved a dividend payment of UGX 1.5 per share after the company achieved remarkable results for the year 2021 with a net profit of UGX 5.92 billion.
In comparison to the distribution of UGX 1.35 per share announced in 2020, this represents an increase of 11%.
The shareholders listed on the register as of the close of business on June 29, 2022, will receive the dividend for the fiscal year 2021 no later than July 20, 2022.
The UCL Board Chairman, Eng. Martin Kasekende, made this announcement at the company’s annual general meeting, which was held at the Sheraton Hotel Kampala.
According to Eng. Kasekende, the company’s dedication to adopting a solid plan in the current economic climate is what led to the remarkable achievement.
Martin Kasekende, Chairman of the UCL Board
The UCL Managing Director, Mr. Reuben B. Tumwebaze, reiterated the organization’s impressive achievements.
Despite the unpredictability of the market this year, the company nevertheless outperformed 2020 in terms of results. Our safety record has improved and is still improving, we’ve expanded our domestic distribution networks, and our key projects are moving along quite well.
highlights of performance
Comparing the period to the year 2020, total revenue climbed by 24 percent to UGX 36.7 billion, mostly as a result of improved production efficiency and a rise in sales volume.
From UGX 13.5 billion in 2020 to UGX 17.2 billion in 2019, the gross profit increased by 27%.
Due to increased funding for corporate operating expenditure initiatives for the period, operating costs increased by 28% to UGX 12.1 billion from UGX 9.4 billion.
As a result, the period’s profit after tax climbed by 21%, from UGX 4.9 billion in 2020 to UGX 5.9 billion.
Because of the purposeful investment in our two factories at Kajjansi and Kamonkoli as well as the purchase of clay resources, total assets increased by 8% to UGX 74.5 billion. The amount of dividends paid out overall is UGX 1.35 billion.
Within the AGM
Kasekende claimed that Uganda Clays Limited flourished and continued to show good performance despite the challenging circumstances in the year 2021 (the pandemic and lockdown), thanks to strategic actions like rebuilding and enhancing Kamonkoli kiln and boosting production.
On the other side, Tumwebaze said that both the quality and quantity of their products have significantly increased.
By 2023, we expect to have 90% customer happiness, 80% staff satisfaction, Sh72 billion in revenue, and 5% waste. This year, our strategic aim is to maintain our change, and we are doing so by implementing numerous programs like Visual Felt Leadership, which involves every employee, he said.
Director of UCL, Reuben B. Tumwebaze
A dryer was installed, which was an internal innovation that helped the company save expenses, in addition to the kamonkoli line, which has doubled production.
“Our sales revenue rose from Shs28 billion to Shs36 billion. Additionally, we are attempting to remain current in our neighborhood. We teamed with a local school to empower its female students, and we assisted four women in regaining control of their companies that had been damaged by the lockdown. We are collaborating with local clay producers as well.
“We want to register more clay makers; as of now, we have 10,” he continued. To ensure that we supply high-quality clay products in Uganda and around the world, we don’t want to battle with our rivals; instead, we want to cooperate with them. Additionally, we want to make sure that all factory workers are safe.
The business also has plans to establish a school for young builders to educate the next generation of
According to Jones Muhumuza, the Chief Financial Officer of Uganda Clays, the company had strong financial metrics in 2021, with revenue 24 percent more than in 2020 and annual earnings before tax up 16 percent.
Jones Muhumuza, the Uganda Clays’ Chief Financial Officer
“Our overall assets climbed by 8%, but our net profits rose by 21% (Shs5.9 billion)” (Shs74.5bn). We purchased 120 acres of land that will allow us to live comfortably for a very long time. We bought trucks, machinery, etc.
“We managed a water efficiency of 21%, and 66% of our water is recycled. In keeping with our tradition of giving back to the community, we tested more than 100 people for HIV. We were successful in vaccinating all of our personnel against COVID 19. We take delight in supporting Kajjansi FC, our local football team. By the end of the year, we will be in Mwanza, Tanzania, thanks to our expansion plans, Muhumuza remarked.
Mr. Mathias Nalyanya is the Uganda Clays Board’s secretary.
The Uganda Clays Board’s secretary, Mr. Mathias Nalyanya, suggested that they start disbursing profits using mobile money.
“Shareholders will need to update their contact information and bank accounts as a result. To update all of their information in the shareholder registries, we ask our shareholders.