- After reporting losses last year, Cipla Quality Chemicals Uganda posted a profit of 5.5 billion Ugandan shillings (USD 1.5 million) for the financial period ending September 2021.
- The company manufactures antiretroviral (ARV) drugs for HIV/AIDS patients, as well as medicines for tuberculosis, malaria, and hepatitis.
After reporting losses last year, Cipla Quality Chemicals Uganda posted a profit of 5.5 billion Ugandan shillings (USD 1.5 million) for the financial period ending September 2021. The company manufactures antiretroviral (ARV) drugs for HIV/AIDS patients, as well as medicines for tuberculosis, malaria, and hepatitis.
The company had reported a net loss of 21.3 billion Ugandan shillings (USD 5.98 million) in September 2020. According to the company’s latest financial results, its profit before tax stood at 5.5 billion Ugandan shillings (USD 1.5 million) at the end of September 2021. Its working capital position also improved from 43 billion Ugandan shillings (USD 12 million) to 84 billion Ugandan shillings (USD 23.6 million) over the same period.
The improvement in the company’s performance was primarily due to a sharp increase in profit margins, which rose from 8.5% in September 2020 to 23.33% in September 2021. This success was attributed to aggressive renegotiation of the company’s supply contracts with raw material suppliers and a reduction in logistics costs triggered by the recent easing of Covid-19 pandemic lockdown measures.