Ugandan building materials producer Uganda Clays Limited (UCL) encountered a revenue decline in its recently concluded five-year strategic plan. UCL’s 2023 revenue dipped to Shs 30.1 billion ($8.4 million) from Shs 36.6 billion ($10.2 million) in 2022.
The company attributed the decrease to a confluence of internal and external operational challenges. While specifics remain undisclosed, the report suggests these disruptions resulted in product shortages, hindering revenue generation.
Despite these setbacks, UCL demonstrates commitment to recovery. The company strategically invested Shs 7.9 billion ($2.2 million) in capacity expansion during 2023. This investment reportedly yielded improved production performance in the latter half of the year.
UCL’s leadership, under Managing Director Eng. Martin Kasekende, remains steadfast in its long-term goals. Kasekende reaffirmed the company’s dedication to upholding its legacy of providing sustainable building solutions to its stakeholders.
UCL’s ability to navigate these operational hurdles will be crucial in achieving profitability. The success of its recent capacity expansion efforts is likely to significantly influence the company’s future performance.
“The company invested Shs 7.9 billion in capacity expansion, leading to improved production performance in the second half of the year,” Kasekende said.
He reassured shareholders and stakeholders of the company’s dedication to maintaining its heritage of sustainable building solutions.
To address the aging condition of the company’s plant and machinery, Uganda Clays Limited invested Shs 7.9 billion in a capacity expansion project.
This investment has already shown positive results, with improved production performance in the second half of 2023.
The company is now seeking additional external financial support to further enhance production capacity and product quality.
Employee engagement remains strong at Uganda Clays Limited, with a recent survey revealing a staff engagement index of 71%, underscoring the staff’s commitment to the company.
Kasekende also acknowledged the unwavering support of shareholders, emphasizing the board, management, and staff’s commitment to maximizing shareholder value in the future.
Managing Director Mr. Reuben Tumwebaze acknowledged the impact of external and internal factors on the company’s operations.
“Geopolitical tensions in Europe and domestic infrastructural breakdowns interrupted our logistics, negatively impacting our operations and resulting in product shortages,” he said.
“Equipment integrity and machine breakdowns hit us hard in 2023, increasing our average turnaround time for product delivery from 3 days in 2022 to 45 days,” Tumwebaze stated.
Tumwebaze noted, “At least 7 in every 10 households are currently using iron sheets for roofing, a trend we are trying to reverse by making our products more affordable through incentives like discounts and hire purchases.”
“Our health and safety rating improved to 67% from 53% in 2022, with no fatalities and better use of personal protective equipment,” Tumwebaze highlighted.
“We conducted a staff engagement survey and are pleased to have a score of 71% compared to our target of 70%,” Tumwebaze said.
This focus on employee welfare is part of the company’s broader strategy to maintain high levels of staff engagement and continuous reskilling.
Looking ahead, Tumwebaze expressed gratitude to the stakeholders and emphasized the company’s commitment to its strategic goals.
“I would like to extend our sincere gratitude to all our customers, shareholders, and other stakeholders for showing faith in these challenging times,” he said.