Uganda Clays Limited has announced Shs4.9 billion profits 2020 which is a turnaround from a loss of Shs88 million in 2019. The profits were announced by the UCL Chairman, Board of Directors, Martin Kasekende, during the entity’s Annual General Meeting at Sheraton Hotel, Kampala.
According to the report, the Total Assets grew by 11 per cent; closing the year 2020 at Shs 68.8 billion from a value of Shs62.2 billion at the close of 2019.
Total Revenue reduced by 3 per cent from Shs30.7 billion in 2019 to Shs29.7 billion in 2020. The drop in revenue was attributed majorly to the impact of #Covid-19 on the business. The largest contributor to this revenue was the roofing tiles contributing 64 per cent. An increase was also realised in the other income from Shs845 million in 2019 to Shs1.8 billion in 2020 related to interest from investments in government securities.
Stories Continues after ad
The Gross Margin for the year improved compared to 46 per cent from 31 per cent in 2019. The total overheads dropped from Shs11.1 billion in 2019 to Shs9.3 billion 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 per cent to Shs9.7 billion from Shs2.8 billion in 2019.
The significant improvement in the performance of the entity resulted in a dividend pay-out of Shs1.2 billion out of the profits.
“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 Shs4.9 billion from a loss position the previous year,” Mr. Kasekende 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.”