Business
UCL posts sh3b net earnings in half year results
“The growth was driven by stronger demand across key market segments, including business-to-business, alongside the expansion of the Company's distribution network across the country. Improved plant utilisation further strengthened the Company's ability to meet market demand and ensure consistent product availability,” Jones Muhumuza, managing director at UCL, said.
Matthias Nalyanya, UCL company secretary, Paul Bwiso, CEO Uganda Securities Exchange, Kasekende, and Muhumuza during the Fact Behind the Figures event held at the bourse on September 3. (Credit: Ali Twaha)
By: Ali Twaha, Journalist @New Vision
KAMPALA - Uganda Clays Limited (UCL) has bounced back into profitability, posting a net profit of sh3.05b for the six months ended June 30, 2026.
The performance is a sharp turnaround from the sh1.37b loss it recorded over the same period last year.
The clay products manufacturer’s unaudited interim results show revenue climbed 32% to sh19.81b, up from sh15.06b in the first half of 2025. The company attributed the growth to stronger demand for clay products.
“The growth was driven by stronger demand across key market segments, including business-to-business, alongside the expansion of the Company's distribution network across the country. Improved plant utilisation further strengthened the Company's ability to meet market demand and ensure consistent product availability,” Jones Muhumuza, managing director at UCL, said.
Gross profit nearly doubled to sh11.9b, from sh6.56b a year earlier, pushing the gross margin from 44% to 60%. The company said this came from better production efficiency, tighter cost control and higher output at its Kajjansi and Kamonkoli plants.
Overhead costs fell 17% to sh3.76 billion, which the board said reflected continued cost discipline and a more efficient use of resources.
Profit before tax stood at sh4.37b, compared to a sh1.997b loss in the same period of 2025. After a tax charge of sh1.32b, the company was left with sh3.05b in net profit, translating to earnings per share of sh3.39, against a loss per share of sh1.53 previously.
Despite the return to profit, the board has decided not to declare an interim dividend for the period. UCL said it wants to keep the cash to reduce debt and protect the operating liquidity needed to keep production stable, adding that all available capital will be ploughed back into operations and debt servicing.
“The board has not declared an interim dividend to share in order to preserve cash to sustain production stability,” Martin Kasekende, chairman of the board, said.
Total assets rose to sh81.99b from sh80.6b at the end of December 2025, while shareholders' equity increased to sh41.01b from sh37.96b.
Profit before tax stood at sh4.37b, compared to a sh1.997b loss in the same period of 2025. After a tax charge of sh1.32b, the company was left with sh3.05b in net profit, translating to earnings per share of sh3.39, against a loss per share of sh1.53 previously.
Despite the return to profit, the board has decided not to declare an interim dividend for the period. UCL said it wants to keep the cash to reduce debt and protect the operating liquidity needed to keep production stable, adding that all available capital will be ploughed back into operations and debt servicing.
“The board has not declared an interim dividend to share in order to preserve cash to sustain production stability,” Martin Kasekende, chairman of the board, said.
Total assets rose to sh81.99b from sh80.6b at the end of December 2025, while shareholders' equity increased to sh41.01b from sh37.96b.