Kampala, Uganda | Quality Chemical Industries Ltd. (QCIL) posted a net profit of Shs23.9 billion for the six months ended September 30, 2025, up from Shs22.1 billion a year earlier. The performance underscores the company’s operational resilience as efficiency gains and tighter cost controls helped counter a 2.6% decline in revenue.
Revenue for the period stood at Shs148.2 billion, compared to Shs152.2 billion in 2024, largely due to weaker export earnings and the stronger Ugandan shilling, which reduced foreign income. On a constant-currency basis, however, revenue would have increased by 1.6% to Shs154.6 billion.
Gross profit margins improved to 42.4% from 38.6%, supported by enhanced production efficiencies, prudent cost management, and a focus on higher-margin pharmaceutical products. Operating profit rose to Shs33.0 billion from Shs31.9 billion, while profit before tax climbed to Shs33.9 billion, reflecting stronger overall performance.
Finance income more than doubled to Shs3.8 billion, offsetting slightly higher finance costs of Shs2.9 billion caused by exchange-rate movements. This resulted in a net finance income of Shs0.9 billion, compared to a net cost in the previous year.
Operating cash flow surged to Shs51.4 billion from Shs9.3 billion, driven by improved working capital management, including optimized inventories and faster receivables collection. Cash and cash equivalents rose to Shs54.5 billion, signaling robust liquidity to support ongoing investments.
Total assets grew to Shs236.0 billion from Shs228.9 billion in March 2025, while shareholders’ equity increased to Shs188.4 billion, reflecting retained earnings. The Board declared an interim dividend of Shs4.2 per share, up from Shs3.5 last year, payable on December 5 to shareholders of record as of November 25.
During the half-year, QCIL introduced 16 new pharmaceutical products including anti-malarials, anti-diabetics, anti-hypertensives, anti-fungals, anti-allergics, and antibiotics as part of efforts to expand access to affordable, quality medicines across the region.
Construction has also begun on a second manufacturing facility at the Luzira complex, featuring an advanced injectable production line. The expansion aims to boost capacity, diversify product offerings, and strengthen QCIL’s market position in both public and private healthcare sectors.
Chairman Emmanuel Katongole and Chief Executive Ajay Kumar Pal said the results highlight QCIL’s consistent execution of its growth strategy. “These results reflect our focus on sustainable value creation through efficiency, innovation, and cost leadership,” they said in a joint statement.
Looking ahead, QCIL plans to build on its strong balance sheet and expanding portfolio to deepen market penetration across Africa. The company said it will continue investing in technology and innovation to sustain growth and improve healthcare outcomes in the region.
“With continued investment in capacity and innovation, QCIL is well-positioned to strengthen its role in improving healthcare outcomes and driving regional self-sufficiency in pharmaceuticals,” the company said.