Uganda Clays Posts Sh4.95b Loss, Eyes Turnaround with Major Investments

By Aookya Reporter

Uganda Clays Limited has posted a net loss of sh4.95 billion for the financial year 2024, marking its second consecutive year in the red, up from a sh2.85 billion loss in 2023.

Addressing shareholders during the company’s Annual General Meeting (AGM) held Friday at Kampala Sheraton Hotel, Board Chairperson Eng. Martin Kasekende attributed the deepening losses to rising operational and financing costs, which he said had outpaced modest revenue growth.

“The company recorded an increase in interest expense, rising to sh3.2 billion in 2024 from sh1.8 billion in 2023, primarily due to the full-year accrual of notional interest on the NSSF loan,” Kasekende said.

Despite the loss, revenue rose slightly to sh31.6 billion, up from sh30.4 billion the previous year. However, gross profit declined to sh8.2 billion from sh8.6 billion in 2023.

New Strategy to Revive Operations

The board expressed optimism about the future, citing the launch of a 10-year strategic plan focused on turnaround, repair, and aggressive growth.

“Turnaround will stabilize operations and improve cost control; repair will optimize processes and invest in automation; and aggressive growth will focus on product diversification and regional expansion across East Africa,” said Kasekende.

Boost in Production Capacity

Managing Director Reuben Tumwebaze revealed the installation of a state-of-the-art Italian manufacturing line at the Kajjansi plant, expected to boost tile production from 35,000 to 120,000 tiles per day.

“The new line will improve efficiency, automate key processes, and enhance product quality,” he said, noting that the kiln components are expected by early 2026.

Additionally, the company plans to install a high-capacity brick line to reduce the cost of bricks from sh1,500 to around sh700, making them more competitive.

“Our goal is to provide a premium brick that does not require plastering, yet remains affordable,” Tumwebaze said. “These two projects are expected to push sales revenue beyond sh100 billion and return the company to profitability.”