Africa-Press – Uganda. Uganda Clays Limited has staged a return to profitability in the 2025 financial year, posting a net profit of Shs142 million—a sharp recovery from a net loss of Shs4.95 billion recorded in 2024.
The performance marks a significant turning point for the country’s leading clay products manufacturer, which had faced consecutive losses in recent years, including a Shs2.85 billion deficit in 2023.
The results signal early success in the company’s efforts to stabilize operations, improve efficiency, and restore financial sustainability.
Revenue growth was a key driver of the turnaround, with total income rising 10% to Shs34.8 billion in 2025, up from Shs31.6 billion in 2024.
The increase was largely attributed to improved production stability, which enabled the company to boost output and meet demand across key segments of Uganda’s construction sector.
Uganda Clays manufactures a range of clay-based building materials, including roofing tiles, bricks, and ceramic products widely used in residential and commercial developments.
Improved production allowed the company to increase sales volumes and strengthen its market position amid growing construction activity in the country.
At the same time, the company implemented strict cost-control measures, reducing operating expenses by 8% to Shs10.5 billion, compared to Shs11.3 billion in 2024.
Enhanced efficiency, reduced wastage, and tighter management of administrative and production costs contributed to the improved margins.
Earnings per share rose to Shs0.16, reversing a loss per share of Shs5.5 in the previous year, signaling a recovery in shareholder value.
Liquidity also strengthened, with the company’s net cash position rising to Shs554 million from Shs332 million in 2024, supported by better collections and stronger cash flow management.
Despite the gains, Uganda Clays continues to face financing pressures. Finance costs increased to Shs3.9 billion, up from Shs3.2 billion in 2024, largely due to interest on existing borrowings.
A significant component of this debt is a restructured liability of over Shs20.6 billion owed to the National Social Security Fund (NSSF), which holds an estimated 32% stake in the company.
Acting Managing Director Jones Muhumuza said the turnaround was driven by operational stability and disciplined execution of the company’s recovery strategy.
Higher production volumes, enhanced plant efficiency, and cost management initiatives were central to the improved performance.
Looking ahead, Uganda Clays plans to increase capacity utilization, optimize plant performance, and expand market reach to sustain recovery.
However, the company will not declare dividends for the year, prioritizing cash preservation and debt servicing obligations.
Uganda Clays remains a key supplier to Uganda’s construction industry, and its return to profitability signals a positive outlook for the broader manufacturing sector.
While challenges remain, particularly from legacy debt and financing costs, the 2025 performance demonstrates that restructuring efforts are beginning to yield results.
Sustained focus on efficiency, market expansion, and financial discipline will be critical for long-term growth and shareholder value.
For More News And Analysis About Uganda Follow Africa-Press
