Uganda Clays Limited (UCL) has announced that the company posted impressive results for the half year 2021 with a net profit of shs2.75 billion.
The impressive results were recorded despite the Covid pandemic and its effects like the lockdown.
According to the company Managing Director, Reuben Tumwebaze, the impressive performance was a turnaround from a loss position of shs1.4 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 shs17.5 billion for the period compared to shs13 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.’’
During this period, UCL gross profit increased by 190% to shs 7.4 billion from shs2.5 billion in 2020 which was majorly driven by efficiencies and continued cost management measures put in place resulting in controlled production costs.
During the period, overhead costs increased by 12% to shs5.4 billion from shs4.8 billion whereas the total assets increased by 13% to shs70.9 billion, a move the company has attributed to the investment in two plants in Kajjansi and Kamonkooli.