Uganda Clays’ net profit increased by 292 percent in the first half of 2021.
“Despite a hard first half of the year, primarily because to the COVID-19 epidemic, which has impacted the economy and numerous businesses,” Tumwebaze added.
Uganda Clays Limited, a manufacturer of clay products, reported a 292 percent increase in net profit to Shs2.8 billion in the first half of 2021.
According to Reuben Tumwebaze, the company’s Managing Director, the outstanding achievement is a turnaround from a loss of Shs1.4 billion in the same period in 2020.
The entity’s strong improvement in performance can be ascribed 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.
“Despite a hard first half of the year, primarily because to the COVID-19 epidemic, which has impacted the economy and numerous businesses,” Tumwebaze added.
“In the current economic situation, we have also made substantial progress toward a commitment to adopting a robust strategy,” he continued.
During this time, UCL’s gross profit climbed by 190 percent, from Shs2.5 billion in 2020 to Shs7.4 billion in 2021, owing to greater efficiencies and continuing cost management initiatives that resulted in lower production costs.
Total Revenue climbed by 34% to Shs17.5 billion for the period, compared to Shs13 billion in 2020, owing to improved production efficiencies and increased sales volume.
Overhead costs grew by 12% to Shs5.4 billion from Shs4.8 billion over the period, owing to increased support of corporate operating expenditure initiatives.
The company’s total assets increased by 13% to Shs70.9 billion, owing to purposeful investment in the company’s two operations in Kampala and Mbale, Eastern Uganda.
