Qcil posts record profits as costs pressures decline

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Quality Chemical Industries Limited (Qcil) has reported a 39% jump in full-year profit after tax to sh56.4b.

Its strongest earnings yet for the pharmaceutical manufacturer. Qcil finally collected the last of its outstanding receivables from the Government of Zambia, balances that had been fully written off in earlier years. The reversal of those impairment provisions added about sh4.4b to the bottom line.

The listed drug firm on the Uganda Securities Exchange said revenue for the year ended March 31 climbed 8.7% to sh290b from sh267.1b a year earlier.

Adjust for the stronger Ugandan shilling, which crimped reported dollar-denominated sales, and the underlying growth was closer to 12%.

“Qcil delivered strong results, driven by consistent operational execution, improved manufacturing efficiencies and disciplined cost management,” the firm said in its annual report.

“Given that much of the Company’s revenue is denominated in USD, the stronger Ugandan Shilling reduced the reported growth. On a constant currency basis, using the average exchange rate prevailing in FY25, FY26 revenues would have amounted to sh299.4b, representing a 12.1% increase.”

The company credited better manufacturing efficiencies and tighter control of raw material costs. The board has recommended a final dividend of sh6.4 per share, bringing the total for the year to sh16.6 per share, a 23% increase on the sh13.5 paid in FY25.