KAMPALA – Uganda Clays Limited through the Board of Directors revealed, on Thursday, July 1, that the company posted good results for the year 2020 with a net profit of UGX 4.9 bn which is a turnaround from a loss of UGX 88 Mn in 2019.
The significant improvement in the performance of the entity resulted in a dividend pay-out of UGX 1.2 bn (UGX 1.35 per share) out of the profits. This was announced by the UCL Chairman, Board of Directors, Martin Kasekende, during the entity’s Annual General Meeting at Sheraton Hotel, Kampala held virtually in compliance with the COVID-19 SOPs.
“Despite the COVID-19 pandemic that has affected the economy and many businesses, UCL remained resilient, producing unprecedented results, having registered the highest profit after tax of UGX 4.9bn from a loss position the previous year,” Mr. Kasenkende said upon declaring the results.”
“We believe this is not a one-off good performance and the company was well and truly on a trajectory of growth and profitability, and I would therefore like to congratulate Management upon delivering a remarkable performance in 2020 in spite of the challenging business environment.” Kasekende added.
Reuben Tumwebaze, UCL Managing Director, re-echoed the entity’s resilience in the tough operating environment, “The COVID-19 pandemic, whilst presenting challenges for the business and impacting the business, especially in the first half of the year, also acted as a catalyst for change, prompting us to take decisive action to protect and upgrade the business. This included a reassessment of our costs, ensuring we are fit for the future and in a strong position to capitalize on continued improvement in our markets.”
The company’s total Assets grew by 11%; closing the year 2020 at UGX 68.8bn from a value of UGX 62.2bn at the close of 2019.
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However, total Revenue reduced by 3% from UGX 30.7bn in 2019 to UGX 29.7bn in 2020. The drop in revenue was attributed majorly to impact of COVID-19 on the business. The largest contributor to this revenue was the roofing tiles contributing 64%. An increase was also realised in the other income from UGX 845mn in 2019 to UGX 1.8bn in 2020 related to interest from investments in Government securities.
The Gross Margin for the year improved compared to 46% from 31% in 2019. The total overheads dropped from UGX 11.1bn in 2019 to UGX 9.3bn in 2020 as a result of cost management measures put in place during the period. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 240% to UGX 9.7Bn from UGX 2.8Bn in 2019.