Building materials company Uganda Clays Limited has warned that it will post a third consecutive loss for the first half of the year, blaming disruptions at its two plants for a decrease in output.
For the 2024 calendar year, the government-controlled company reported its second consecutive annual loss. It attributed this to high “direct and indirect costs”, according to a statement, despite improvements in production volumes and revenues.
On Friday, Uganda Clays said it’s “plants in Kajjansi and Kamonkoli experienced operational disruptions, leading to decreased production levels and lower revenues,” meaning that the company will report a loss for the period ending in June. The statement did not elaborate on the reasons for the reduction in output.
“The operational disruptions have, however, been resolved and there is improved production performance, which is expected to result in stronger performance in the second half of the year,” added the statement.
Last year, the company reported a loss of Shs894mn for the same period, up from a loss of Shs686mn in 2023. This was largely due to an increase in finance costs following the “recognition of interest from the revised terms of the NSSF loan”.
In its interim financial statement last year, Uganda Clays said that its “production operations continue to be disrupted by outdated machinery, resulting in lower production levels and sales performance.”
