Africa-Press – Uganda. Baked clay building materials manufacturer, Uganda Clays Limited has for the second consecutive year reported net loss at the end of the financial year.
Speaking during the company’s annual general meeting on Friday at Kampala Sheraton Hotel, the board announced that the company made a shs4.95 billion loss in the year 2024, higher than the shs2.85 billion loss in 2023.
“This position was primarily driven by a faster -than anticipated escalation in operational and financing costs which outpaced the modest growth in revenue,” board chairman, Eng. Martin Kasekende told the shareholders during the AGM on Friday.
“The company recorded in an increase in interest expense for the period, rising to shs3.2 billion in 2024 from shs1.8 billion in 2023. This was primarily due to due to the full 12-month accrual of notional interest on the NSSF loan in 2024, compared to only eight months in the previous year.”
On a positive note, the board chairman however told the shareholders that total revenue for the company slightly rose to shs31.6 billion from shs30.4 billion 2023.
The gross profit reduced to shs8.2 billion from shs8.6 billion in 2023.
Future is Bright
The Uganda Clays board however told the shareholders that there is soon light at the end of the tunnel with the development of a 10-year strategy anchored on turnaround, repair and aggressive growth.
“The turnaround will focus on stabilizing operations, improving cost control and re-establishing profitability. Repair will see the optimization of existing processes, investment in automation and skills and restoration of operational efficiency. On the other side, aggressive growth envisions product diversification into complementary building materials and regional expansion across East Africa,” Eng. Kasekende said.
Uganda Clays Managing Director, Reuben Tumwebaze said they have delivered a state-of-the-art Italian manufacturing line at the Kajjansi plant.
“Once fully operational, this line will significantly boost production capacity, enabling us meet the increasing demand in the market with greater efficiency and product variety,” Tumwebaze said.
He said the interventions were strictly for sustaining installed capability in the two factories and increase capacity.
“We have done aggressive expansion in the clay business. We activated a new tile line that will increase our production at Kajjansi by 85,000 tiles per day.”
Tumwebaze said the Kajjansi tile factory produces 25,000 tiles per day while Kajjansi produce 10,000 to make it 35,000 in total and with the new line, this will go up to 120,000 tiles per day.
“The new line will be highly automated and very efficient with good quality products. The molding, preparation , drier and some accessories of the kiln which are part of the new line have already been delivered. The kiln for the new line will begin coming in early next year,” he said.
He said the company also intends to install a large capacity brick line of production to lower costs for each brick which are currently at shs1500 to at most shs700 to ably compete in the market.
“The shs1500 is high. Our competitors on the roadside, sell a brick at shs500.Our new line will be able to produce a brick at around shs700, very good, you use it and don’t need to plaster the wall. Everybody will be able to manage that. Those two projects will deliver sales revenue, way above ssh100 billion and drive profitability.”
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