Uganda Clays Limited (UCL) has revealed that its half-year results for 2021 were remarkable, with a net profit of Shs2.75 billion.
Despite the Covid pandemic and its ramifications, such as the lockdown, the amazing outcomes were documented.
According to Reuben Tumwebaze, the company’s Managing Director, the outstanding achievement was a turnaround from a loss of shs1.4 billion in the same time in 2020.
“The entity’s considerable improvement in performance is largely driven to better production efficiencies and a 34 percent increase in sales volume to shs17.5 billion for the period compared to shs13 billion in 2020,” he said.
‘’Despite a difficult first half of the year, primarily due to the COVID-19 epidemic, which has had a negative impact on the economy and many enterprises, Uganda Clays Limited (UCL) has shown resilience, delivering excellent results as seen by the first six months performance. In the current economic situation, we have also made great progress toward a commitment to adopting a strong strategy.”
During this time, UCL’s gross profit climbed by 190 percent, from shs2.5 billion in 2020 to shs 7.4 billion in 2021, owing to greater efficiencies and ongoing cost management efforts that resulted in lower production costs.
Overhead costs climbed by 12% to shs5.4 billion from shs4.8 billion during the year, while total assets increased by 13% to shs70.9 billion, a move ascribed to the company’s investment in two plants in Kajjansi and Kamonkooli.