Overview:
This was attributed to improved efficiencies in production and a change in the sales model.
Uganda Clays Ltd has released financial results for the year ended 31 December 2021 indicating a revenue steep growth despite Covid-19 challenges.
According to the audited financial statements, the company profits increased by 24% to UGX 36.7 billion, up from UGX 29.7 billion in the year 2020.
This was attributed to improved efficiencies in production and a change in the sales model to the use of agents to reach more customers across the country.
The statement signed by Eng Martin Kasekende, the Board Chairman; and Mr Reuben Tumwebaze, Managing Director, reveals that business conditions in the first half of the year remained difficult due to the continuing impact of COVID-19, which dampened an already challenging macro-economic environment.
“The country was emerging from general elections and was hit by a severe second wave of COVID-19 which eventually led to a second national 42-day lockdown in June,” the statement reads in part.
“Despite this backdrop, the company has continued to show resilience and has posted strong results for the period and is evidenced from the number. Amidst the strong headwinds, the company has continued to focus on maintaining business continuity increasing product inventory by improving production efficiencies while ensuring the health and safety of staff and customers,” the company added.
The statement indicates that gross profit for the period increased by 27% to UGX 172 billion from UGX 155 billion in 2020, which is attributed to efficiencies and continued cost management measures put in place, resulting in controlled production costs.
Overhead costs increased by 28% to UGX 12.1 billion from UGX 9.4 billion in tandem with increased sales. As a result, profit after tax for the period increased by 21% to UGX 5.9 billion from UGX 4.8 billion in 2020.
Amidst the strong headwinds, the company has continued to focus on maintaining business continuity increasing product inventory by improving production efficiencies while ensuring the health and safety of staff and customers,
extract from financial statement
Balance Sheet analysis shows that total assets increased by 5% to UGX 745 billion, which the directors say is mainly attributed to deliberate investment in their factories, clay reserves and trucks to move their products and raw materials.
The statement also indicates that net cash from operating activities increased to UGX 9.3 billion from UGX 6.1 billion in 2020, driven by increased production and sales volume and effective management of working capital.
The Board of Directors proposed a final dividend for the year ended 31 December 2021 of UGX 1.35 billion (UGX 1.5 per share).
“The proposed dividend is subject to approval by the shareholders in an annual general meeting to be held on 29th June 2022. The dividend, which is subject to withholding tax, will be paid by 20th July 2022 to shareholders on the register at the close of business on 29th June 2022,” the financial statement reads in part.
The financial statements were audited by PKF Uganda, Certified Public Accountants, and have received an unqualified opinion.