(Kampala) – Quality Chemical Industries Ltd. (Qcil), East Africa’s largest producer of WHO-prequalified HIV/AIDS and malaria treatments, has reported a substantial rise in profits, showing a 25.6% growth in earnings for the six-month period ending in September 2024. Qcil’s profit after tax soared to sh22 billion, up from sh3.5 billion over the same period last year.
The company has declared an interim dividend of sh3.5 per share, totaling sh12.7 billion. Shareholders of record by November 29, 2024, can expect their dividend by December 12, 2024.
Qcil’s revenue over the six months grew to sh152 billion, driven by increased demand from sovereign and institutional customers. Orders from sovereign customers rose by 35.7%, reaching sh31.6 billion, while institutional orders also saw an increase of 35.2%, amounting to sh8.3 billion. This growth has been attributed to better manufacturing efficiencies, effective management of raw material costs, and a shift toward higher-margin products such as antiretroviral (ARV) treatments.
| Financial Highlights | Amount in Billion (UGX) | % Growth |
|---|---|---|
| Profit after Tax | 22 | – |
| Dividend per Share | 3.5 | – |
| Total Revenues | 152 | 25.6% |
| Sovereign Orders | 31.6 | 35.7% |
| Institutional Orders | 8.3 | 35.2% |
Qcil’s board has approved the construction of a second production facility on its current site. The expansion is expected to increase the company’s production capacity for existing treatments, allow for entry into new therapeutic areas like tuberculosis, and support the manufacturing of injectables and other innovative medical products.
