Overview:
The company said a preliminary review of its unaudited management accounts showed that profit after tax for the half year ended September 30, 2026, would be at least 25 per cent lower than the profit recorded during the corresponding period last year.
Quality Chemical Industries Limited (Qcil) has warned that its after-tax profit for the six months ended September 2026 is expected to decline by at least 25 per cent, citing a tax dispute with the Uganda Revenue Authority (URA).
In a notice to shareholders and investors dated October 29, the company attributed the anticipated decline to a one-off accounting charge arising from a capital gains tax dispute with URA, which was decided against the pharmaceutical manufacturer.
The company said a preliminary review of its unaudited management accounts showed that profit after tax for the half year ended September 30, 2026, would be at least 25 per cent lower than the profit recorded during the corresponding period last year.
Qcil, however, sought to distinguish the anticipated decline from its underlying business performance, describing the accounting entry as non-recurring and unrelated to its core operations.
“The entry is non-recurring in nature and does not arise from the Company’s core business activities,” the board said in the announcement.
The profit warning signals a weaker half-year financial performance for the company, although the extent of the impact on its earnings will only become clearer when it publishes its interim financial results.
The board said management remained focused on the company’s operations and delivering sustainable long-term value to shareholders.
It also advised shareholders and investors to exercise caution when dealing in the company’s shares ahead of the release of the interim results.
The announcement was made in compliance with Rule 38(3) of the Uganda Securities Exchange Listing Rules, 2025, which requires listed companies to disclose material information that could affect investors’ decisions.