Ajay Kumar Pal, the new managing director of Cipla Uganda. PHOTO/COURTESY

Drug manufacturer Cipla Quality Chemicals Uganda has recorded profit before tax of Shs5.5 billion ($1.5 million) for the period ending September 2021, raising optimism among managers and shareholders.

According to Cipla Quality Chemicals Uganda’s latest financial statement, the company recovered from a net loss of Ush21.3 billion ($5.98 million) in September 2020, it recorded profit before tax of Ush5.5 billion ($1.5 million) at the end of September 2021.

The firm’s sales revenues rose slightly from Shs122.6 billion ($34.5 million) in September 2020 to Shs124 billion ($34.9 million) in September 2021.

Gross profit margins sharply increased from 8.5 percent in September 2020 to 23.33 percent in September 2021.

The firm’s basic earnings per share also improved from a negative position of 4.0 to a positive ratio of 0.69 during the period under review. Total assets stood at Ush238.5 billion ($67 million) at the end of September 2021.

CiplaQCIL also secured a number of product registrations in West Africa (WAHO) and Southern Africa (ZAZIBONA), which increased the regulatory footprint from 16 to 31 countries across Africa.

The expansion of both product lines and geographical footprint resulted in increased sales volumes and revenue growth during the past financial year. Some of the financial highlights include revenue growth of 48% year-on-year, net margin improvement of 8% year-on-year, and cash flow improved by more than 20%.

“The immediate priority of the business is to make it profitable in line with the focus on sustainable and profitable growth to achieve our short- and long-term goals. Another key aim is to improve business agility and we will strongly focus on ensuring a solid governance framework,” said Ajay Kumar, the CEO of CiplaQCIL.

“We will expand our portfolio and invest in new therapeutic areas such as oncology and continue to focus on efficiencies in business,” he added.

“We are optimistic that the company will turn around. Our focus is to ensure that the business meets the needs of its various stakeholders particularly our customers and shareholders. We are confident that with the commitment to our strategy, mission, and vision our performance in future years will be much better,” said Emmanuel Katongole, Chairman of CiplaQCIL.