UCL sees rise in revenue, shareholders to be paid dividend

KAMPALA – Uganda Clays Limited (UCL), known for making quality baked clay building products, has reported an increase for the year ended December 31, 2021, as it collected Shs 36.7 billion, which was a 24 percent jump from Shs 29.7 bln realised in the year 2020.

The company’s Managing Director, Reuben Tumwebaze, attributes the growth in revenue to improved efficiencies in production and use of agents to reach more customers.

“Gross profit for the period increased by 27 percent to Shs 17.2 bln from Shs 13.5 bln in 2020,” Tumwebaze adds, attributing the rise in gross profit to efficiencies and continued cost management measures put in place.

However, the company’s overhead costs in 2021 rose by 28 percent to Shs 12.1 bln from Shs 9.4 bln in 2021, an extract from the company’s audited financial statements shows.

Further, the company’s balance sheet analysis shows its total assets grew by 8 percent to Shs 74.5 bln in 2021, which Tumwebaze says was on account of deliberate investment in factories, clay reserves and trucks to move products and raw materials.

Net cash from operating activities rose to Shs 9.3 bln in 2021 from Shs 6.1 bln in 2020. This, the company says was driven by increased production and sales volume and effective management of working capital.

From the net profit, shareholders expect to receive a dividend of Shs 1.5 per share on by July 20, 2022, from Shs1.35bln provided. Shareholders will approve the payment of the dividend during in an annual general meeting to be held on June 29, 2021.

UCL operates two plants in Kajjansi and Kamonkoli (eastern Uganda), producing roofing tiles, bricks, maxpans, quarry floor tiles and others.

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