Uganda Clays Limited has reported after-tax profit of Shs2.39bn, according to the audited financials released in the press on Friday. It is a less than 1 percent increase from last year, but this is the second year in black.
This is the second annual after-tax profit since 2012.
Uganda Clays’ total revenue increased by 4.5% from Shs26.03bn in 2016 to Shs27.20bn in 2017. The gross profit – before expenses and tax – also grew by 5% from 10.46bn in 2016 to 10.99bn in 2017.
The turnaround strategy for returning the company to profitability involved cost-cutting with the company letting go of several staff members and reducing production expenses wherever possible. This year’s financials however, reflect an increase in expenses.
While distribution and operating expenses remained relatively unchanged, there is a 47.9% increase in administrative expenses, from Shs1.73bn in 2016 to Shs2.56bn in 2017. According to the statement accompanying the release, the company “has continued to intensify marketing activities to grow revenue as well as to improve staff motivation and thereby improve productivity.”
The money generated from operating activities almost doubled from previous financials, at Shs4.22bn from Shs2.93bn in 2016, while money spent in investing activities shot up to Shs6.62bn in 2017 from Shs180 million in 2016.
The Board of Directors recommended a divided of Shs1.