Uganda Clays Unveils a 5-Year Strategic Plan

25 June 2024
The Independent (Kampala)

Kampala, Uganda — Uganda Clays Limited has unveiled a 5-year strategic plan aimed at enhancing customer satisfaction, boosting shareholder value, and fostering employee engagement.

The strategic plan, unveiled at the company's Annual General Meeting (AGM) in Kampala, signifies a renewed commitment to sustainable growth and value creation under the company's slogan, "Beauty to last."

UCL Managing Director, Reuben Tumwebaze, said he is optimistic about the company's future performance, citing strong market demand for housing and the solid foundation laid by the previous strategic plan.

"With the new strategic plan, we are poised to achieve sustainable growth and deliver significant value to our customers, shareholders, and employees," Tumwebaze said.

This development comes as Uganda Clays Limited faces stiff competition from other roofing products producers, including steel manufacturers like Roofings Group and Uganda Baati, who have introduced innovative roofing materials.

This competition has contributed to a decline in Uganda Clays Limited's share price, which has fallen from a high of Shs 29 to currently fluctuating between Shs 12 and Shs 13 on the Uganda Securities Exchange.

UCL closes its 2019-2023 strategy with various successes in business processes and people & systems, with kiln recovery at 79% and a staff engagement index at 71%, both exceeding targets.

However, customer satisfaction and financial performance fell short, with a net promoter score of 13% and revenue of Shs30 billion, below the targets of 60% and Shs31 billion, respectively.

Despite these challenges, UCL maintained a positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Shs3.6 billion, demonstrating strong management stewardship.

The company is focused on returning to profitability, supported by a Shs7.9 billion investment in capacity expansion that is already improving production performance.

Looking ahead, Tumwebaze said the company has secured essential mining permits and aligned with authorities to ensure a seamless setup of new equipment.

Meanwhile, the listed firm retired former NSSF Managing Director, Richard Byarugaba and Florence Namatta Mawejje.

Read the original article on Independent (Kampala).

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