Uganda Clays Limited experienced a 34 per cent growth in sales, helping the company post improved performance in the first half of 2021.
This, according to Uganda Clays, helped the building materials manufacturer to register Shs17b from sales income in the period compared to Shs13b in the same period in 2020.
During the period Uganda Clays also registered an increase its production from 500,000 roofing tiles per month to 950,000, enhanced by improved production at both Kajjansi and Kamonkoli factory.
The company also indicated that the improvement in production has enabled it to serve its export markets both in Kenya and South Sudan.
While presenting the company’s financial results for the first half of 2021 in Kajjansi, Wakiso District, Mr Reuben Tumwebaze, the recently appointed Uganda Clays managing director, said the performance was a turnaround from the loss position of Shs1.4b that had been incurred during the same period in 2020.
“Despite a challenging first half of the year, mainly due to Covid-19, Uganda Clays demonstrated resilience, producing positive results as highlighted by the first six months of the year. We have also made significant strides towards a commitment to implement a robust strategy in the current economic environment,” he said, noting that in 2022 the company production will be further boosted with the Kajjansi plant producing about 1.8 million roofing tiles per month while Kamonkoli will produce between 10 and 15 million tiles.
Mr Tumwebaze also noted that Uganda Clays now has 15 active agents across the country through which a number of distribution channels have been opened up.
Uganda Clays which has specialty in production of roofing tiles also produces bricks, maxpans, quarry floors tiles and ventilators, among others.
During the period, Mr Tumwebaze said, Uganda Clays had re-activated its regional markets with sales in Kenya, Tanzania and South Sudan recovering from 0 per cent to 2 per cent.
Gross profit increased by 190 per cent to Shs7.4b from Shs2.5b, majorly due to efficiency and continued cost management measures.
Total revenue increased by 34 per cent to Shs17.5b for the period compared to Shs13b in the same period in 2020 while overhead costs increased by 12 per cent to Shs5.4b from Shs4.8b due to increased funding of company operating expenditures.
Total assets increased by 13 per cent to Shs70.9b from Shs62.9b in 2020, mainly because of deliberate investment in the Kajjansi and Kamonkoli plants.