Uganda Clays
Uganda Clays made a modest profit of UGX142M in 2025
Uganda Clays Limited (UCL) has recorded a net profit of UGX142m in 2025, compared to a loss of UGX4.95bn in 2024, making a return to profitability. Earlier in 2023, UCL made a loss of UGX 2.85bn.
According to the Company’s financial statements released today, earnings per share rose to UGX0.16, from a loss per share of UGX5.5 in the previous year.
UCL’s revenue grew by 10% to UGX34.8bn in 2025, from UGX31.6bn in 2024, driven by improved production stability which supported higher sales volumes across key market segments.
Additionally, operating expenses declined by 8% to UGX10.5bn from UGX11.3bn in 2024, reflecting improved efficiency and streamlined operations.
The company’s net cash position improved to UGX554m in 2025, from UGX332M in 2024, driven by improved collections and stronger cash management.
However, finance costs increased to UGX3.9bn from UGX3.2bn in 2024, primarily due to continued interest charges on existing borrowings.
It should be noted that Uganda Clays is currently managing a restructured debt of over Shs20.6 billion owed to the National Social Security Fund (NSSF), originating from a 2010 loan of Shs11 billion. The loan, intended for factory expansion, became a long-term liability, with repayment challenges leading to new, long-term repayment terms. NSSF is the largest shareholder in Uganda Clays, holding roughly 32% stake.
Jones Muhumuza, the Uganda Clays Ag. Managing Director, attributed the “significant turnaround” in the company’s performance to “improved operational stability across its production processes.”
“This performance was reinforced by higher production volumes, enhanced plant efficiency, and disciplined cost management across key operational areas,” Muhumuza said in the statement, adding: “…despite elevated financial costs, largely attributable to interest obligations on existing borrowings, the company achieved stronger revenue growth relative to cost increases, culminating in a return to profitability.”
Outlook
Uganda Clays banks on capacity utilization to build on the 2025 performance.
The management says they will focus on driving plant efficiency and output to capture growing market demand and enhance margins. The company also plans to embark on market expansion and operational efficiency.
However, Uganda Clays shareholders will not get any dividend after the Company posted minimal profit. UCL management says the decision not to give dividends was taken “in order to preserve cash and support ongoing operational recovery.”
Thanks to the Ag. Director UCL but more efforts are required to drive a drastic increase on the company’s growth and development.