Uganda Clays Limited (UCL) has returned to profitability after three years of losses, posting a net profit of Shs141.75 million for the financial year ended December 31, 2025, as operational reforms and cost-cutting measures began delivering results.
The listed construction materials manufacturer reported the turnaround during its Annual General Meeting (AGM) in Kampala on Friday, reversing a Shs4.95 billion net loss recorded in 2024.
Acting Managing Director Jones Muhumuza attributed the improved performance to the company’s multi-year turnaround strategy, which focused on strengthening operational efficiency, improving financial discipline, and driving organizational reforms.
“Our sustained focus on operational efficiency and accountability is yielding results. The structural transformation of the business is taking hold,” Muhumuza said.
According to the company’s audited financial statements, revenue grew by 10 percent to Shs34.8 billion, up from Shs31.6 billion in 2024, marking Uganda Clays’ strongest revenue performance since 2022.
Growth was recorded across several product lines, with Maxpans leading the way after sales rose 53 percent to Shs5.79 billion. Revenue from half bricks increased by 27 percent to Shs2.37 billion, while quarry tiles posted a 16 percent rise to Shs2.17 billion.
Roofing tiles remained the company’s flagship product, generating Shs23.77 billion in revenue despite temporary production disruptions caused by planned maintenance at the Kamonkoli manufacturing plant.
The company also significantly reduced production costs. Cost of sales fell by 15 percent to Shs19.8 billion, compared to Shs23.3 billion the previous year, helping gross profit almost double to Shs15 billion from Shs8.3 billion.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) also improved sharply to approximately Shs8 billion, up from Shs1.9 billion in 2024.
Despite returning to profit, the Board declined to recommend a dividend for the 2025 financial year, saying it preferred to retain earnings to strengthen the company’s balance sheet, preserve liquidity and support long-term growth plans.
The board said the business is now on a firmer footing after overcoming the cycle of declining performance experienced since 2022.
Looking ahead, Uganda Clays expects earnings to improve further in 2026, supported by stronger market demand, continued operational efficiencies and ongoing cost optimisation initiatives.
However, the company acknowledged that rising energy costs, project execution risks and working capital management remain key challenges that require close attention.
Uganda Clays, one of Uganda’s oldest manufacturing companies and a leading producer of roofing tiles, bricks, quarry tiles and other clay building materials, has faced challenging trading conditions in recent years.
Rising production costs, inflationary pressures, high energy prices and subdued activity in parts of the construction sector weighed on profitability, resulting in consecutive losses since 2022.
The company’s return to profit in 2025 signals that its restructuring programme is beginning to restore financial stability and positions it for sustainable growth if current operational gains are maintained.
