The Directors of Uganda Clays Ltd have announced the condensed financial statements for the year ended 31 December 2021 indicating a steep growth of revenue despite Covid-19 challenges.
In an extract from the audited financial statements, the company managed to increase profits by 24% to UGX 36.7 billion compared to UCK UGX 29.7 billion in the year 2020, notably due to improved efficiencies in production and a change in the sales mode to the use of agents to reach more customers across the country.
The statement signed by Eng Martin Kasekende, Board Chair and 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.”
“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,” they bragged.
The statement indicates that gross profit for the period increased by 27% to UGX 172 billion from UGX 155 billion in 2020 driven by 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.
Pearl Bank Celebrates Customers in Festive Campaign Dubbed Pearl SantaBalance Sheet analysis shows that total assets increased by 5% to UGX 745 billion which the directors say is mainly attributable to deliberate investment in their factories, clay reserves and trucks to move their products and raw materials.
The statement also indicates an increase in net cash from operating activities to 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.
Financial performance at a glance
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.”
These results are extracted from the audited financial statements of Uganda Clays Limited for the year ended 31 December 2021 and were prepared in accordance International Financial Reporting Standards. The financial statements were audited by PKF Uganda, Certified Public Accountants, and have received an unqualified opinion.
