Kampala, Uganda – Uganda Clays Limited (UCL) posted a wider net loss for the first half of 2025, as rising finance costs and operating expenses offset strong revenue growth driven by higher sales volumes.
The clay products manufacturer reported a net loss of UGX 3.6 billion ($950,000) for the six months ended June 30, 2025, up from a UGX 1.5 billion loss in the same period last year, according to unaudited interim results.
Revenue surged 26% to UGX 16.1 billion from UGX 12.8 billion a year earlier, boosted by increased demand and improved production efficiency. Gross profit nearly doubled to UGX 4.9 billion from UGX 2.6 billion.
However, higher finance costs, which climbed to UGX 1.7 billion from UGX 1.1 billion, coupled with rising operating expenses of UGX 6.5 billion (up from UGX 5.2 billion), weighed heavily on profitability. The company attributed the increase in expenses to greater investment in sourcing inputs and sustaining operations amid inflationary pressures.
“The company reported a loss after tax of UGX 3.6 billion for the period compared to UGX 1.5 billion in the previous year,” UCL said in a statement.
Analysts note that the results highlight UCL’s ongoing challenge of translating sales growth into profitability, with rising costs eroding margins and exposing the company’s vulnerability to interest rate fluctuations and higher input prices.
The wider loss also keeps UCL’s retained earnings in negative territory, limiting its capacity to reinvest or return value to shareholders in the near term. Total assets increased to UGX 78.5 billion from UGX 71.8 billion at the end of December 2024, mainly due to higher inventories and receivables, while total equity declined slightly to UGX 48.1 billion from UGX 51.7 billion.
On a positive note, cash flow from operations improved to UGX 5.1 billion from UGX 2.6 billion, reflecting better collections and operational adjustments. Despite this improvement, the board announced it would not declare an interim dividend for the six-month period due to the loss position.
Listed on the Uganda Securities Exchange, Uganda Clays is one of the country’s oldest manufacturers of clay building products, including roofing tiles, bricks, and floor tiles.