Cost management initiatives, resulting in a decrease in production costs saw Uganda Clays Limited register an impressive UGX4.9 Billion in 2020, bouncing back from an UGX88 million loss in 2019. This is contained in the Company financial statement for the year ended 31st December 2020.
“The year 2020 was unprecedented because of the impact of the Covid-19 pandemic on most businesses. Despite the tough times, the company’s business continued to show resilience but was not immune to the impact of the Covid-19 pandemic. Our main focus was maintaining production to build inventory and employee safety,” company statement says in part
“Gross profit for the period increased by 43% to UGX 13.5 Billion- from UGX 9.5 Billion in the year 2019, driven by cost management initiatives put in place during the year resulting in a decrease of production costs.
“Overhead costs decreased by 15% to UGX 9.4 Billion from UGX 11.1 Billion due to cost-cutting management initiatives put in place during the period.
As a result, profit after tax for the period increased by 5639% to UGX 4.9 Billion from a loss of UGX 88 Million (2019),” the statement reads.
Reversely, Revenue decreased by 3% to UGX 29.7 Billion for the period compared to UGX 30.7 Billion in the year 2019, notably due to business disruptions impacted by the Covid-19 pandemic.
On the Balance Sheet, total assets increased by 11% to UGX 68.8 Billion from UGX 62.2 Billion in the year 2019.
Pearl Bank Celebrates Customers in Festive Campaign Dubbed Pearl SantaCash flow: Cash generated for the period from operating activities was UGX 6.1 Billion compared to UGX 6.3 Billion over the same period in 2019 due to a decline in sales as a result of the impact of covid-19 on the business.
Dividend
“Taking into consideration the current uncertainty of the business environment and the need to invest in the business to improve production capacity and product quality, the Board of Directors recommends a dividend payment of UGX1.21 Billion (UGX1.35 per share) for the year ended 31 December 2020,” the statement says, adding: “The proposed dividend is subject to approval by the shareholders in an annual general meeting to be held on 30th June 2021. If approved the book closure date will be 30th June 2021 and the dividend will be paid by 21st July 2021.”
New Managing Director
Last month, Uganda Clays Ltd appointed Reuben Tumwebaze as the new managing director.
In a notice, Eng Martin Kasekende, the board chairperson, said: “The Board is confident that Tumwebaze is the right person to lead the team that is charged with successfully executing the Company’s business strategy.”
