Quality Chemical posts higher profits on cost cuts
Revenue edged up 0.7% to sh267b while cost of sales fell 10% to sh158.6b, lifting gross profit by 21% to sh108b.
Quality Chemical Industries Limited located at Luzira, Kampala. (Courtesy)
Ali Twaha
Journalist @New Vision
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Quality Chemical Industries Limited (QCIL) reported a 28% rise in net profit to sh40.65b for the fiscal year ending March 2025, driven by tighter cost controls and a one-time recovery of overdue payments.
Revenue edged up 0.7% to sh267b while cost of sales fell 10% to sh158.6b, lifting gross profit by 21% to sh108b.
The pharmaceutical manufacturer attributed part of its profit growth to a sh3.25b reversal of impairment allowances linked to delayed payments recovered from the Zambian government.
“Excluding collections from the government of Zambia, QCIL achieved its highest profit before tax of sh58.4b, marking a 22.1% increase from financial year 24,” the company said in a statement.
QCIL’s shares trade on the Uganda Securities Exchange remained largely unchanged at sh87 per share.
QCIL’s cash reserves, however, dipped to sh34.99b from sh53.45b. The board proposed a final dividend of sh6 per share, bringing the total payout to sh13.5 per share—more than double 2024’s sh5.7.
The company plans to break ground on a second manufacturing plant in Luzira to boost production capacity and enter new markets.
“QCIL is committed to enhancing the accessibility, availability, and affordability of life saving treatments in Uganda and across Africa. The Board has approved the construction of a second manufacturing facility at the Luzira site” QCIL said.
“This new facility will not only increase production capacity for QCIL's existing portfolio but also enable the company to expand into new therapeutic areas, including the production of injectable medications.”