Uganda Clays makes decent profit amid a tough year
July 8, 2021 Written by Ernest Jjingo
Uganda Clays Limited celebrated its 70 years in the country with a Shs 4.9 billion profit for the calendar year 2020, a turnaround from the loss it recorded the previous year.
It is not exactly clear what pushed up the profit of the company although a statement from the company points to investments in the nearly risk-free government securities and a slash in costs as partly responsible for a decent revenue stream.
For a company that has struggled with poor performances in recent years, coupled with a number of management shake-ups, this profit is bound to raise the hopes of many shareholders considering that it happened
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Daily Monitor
Monday May 03 2021
Despite the tough times, Uganda Clays continued to show resilience but was not immune to the impact of Covid-19 disruptions
Summary
Uganda clays continues to battle inherited losses attributed to higher operating costs occasioned by the Kamonkoli factroy that had been put up in an ambitious expansion strategy.
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Uganda Clays overcame a difficult year to register an increase in net profit during the period ended December 2020.
The company, which has recorded a streak of mixed performance in the last five years, however, saw net revenue decline due to Covid-19 related disruptions and intense competition from direct and alternative products.