Kampala, Uganda | THE INDEPENDENT | Clay products producer, Uganda Clays Ltd, has issued a half-year profit warning for the period ending June 30, 2023, attributed to machinery breakdowns.
The company informed its investors that it is expected to register a loss during the period. “The Board of Directors of Uganda Clays Limited (the Company) wishes to inform shareholders and the general public that according to the unaudited financial statements for the half-year January – June 2023, the Company has made a loss,” UCL Chairperson, Martin Kasekende said in a statement on August.18. “The loss position is mainly due to a shortage of products that was occasioned by machinery breakdowns.
This was exacerbated by the unfavorable macroeconomic conditions, characterized by high inflation and the depreciation of the Ugandan shilling against the Euro, which impacted the company’s overall operating and production costs, thus negatively impacting the bottom line.
Accordingly, the shareholders and the general public are advised to exercise caution when dealing in the Company’s securities. “