Uganda Clays Limited (UCL) has reported a net profit of Shs141.75 million for the financial year ended December 31, 2025, reversing a Shs4.95 billion loss recorded in 2024 and marking the company's return to profitability for the first time since 2022.
Speaking at the company's Annual General Meeting (AGM) held in Kampala on Friday, acting Managing Director Jones Muhumuza attributed the improved performance to the successful implementation of UCL's ongoing turnaround strategy, which focuses on operational, financial, and cultural reforms introduced over the past several years.
UCL's audited financial statements show that revenue increased by 10% to Shs34.8 billion, up from Shs31.6 billion in 2024, representing the company's strongest revenue performance since 2022.
The growth was broad-based, driven by strong performance across several product categories.
Maxpans recorded the highest growth, with revenue rising by 53% to Shs5.79 billion. Revenue from half bricks increased by 27% to Shs2.37 billion, while quarry tiles grew by 16% to Shs2.17 billion.
Roofing tiles remained the company's largest revenue contributor, generating Shs23.77 billion during the year. Demand for the product remained strong despite production constraints caused by planned maintenance works at the Kamonkoli factory earlier in the year.
UCL also improved its operational efficiency, with the cost of sales declining by 15% to Shs19.8 billion, compared to Shs23.3 billion in the previous year.
Gross profit nearly doubled to Shs15.0 billion, up from Shs8.3 billion in 2024, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose sharply to approximately Shs8.0 billion, from Shs1.9 billion the previous year.
"These improvements reflect the cumulative impact of coordinated efforts across the company, as well as our sustained focus on operational efficiency and accountability. This confirms that the structural transformation of the business is taking hold," Muhumuza said.
Echoing the acting Managing Director's remarks, the board said the return to profitability demonstrates that the company has successfully broken the cycle of declining performance experienced since 2022 and established a stronger foundation for long-term sustainable growth.
Despite the improved financial performance, the board did not recommend a dividend payout for the financial year ended December 31, 2025.
It said the decision was intended to preserve liquidity, strengthen the balance sheet, and ensure the company remains well positioned to meet its financial obligations while delivering on its long-term strategic objectives.
The board expressed confidence that the progress made during 2025 provides a solid platform for continued growth and value creation.
While challenges such as volatile energy costs, project execution risks, and working capital management remain, Uganda Clays believes it is better positioned than at any point in the past three years to manage these risks and sustain its recovery.
The company expects earnings to continue improving in 2026, supported by enhanced operational efficiencies, stronger market demand, and ongoing cost optimisation initiatives.
