2 weeks Ago By The Independent
Kampala-based pharmaceutical firm, Quality Chemical Industries Ltd. (QCIL), has posted an impressive Profit After Tax of Shs 22.05 billion for the half-year period ending September 30, marking a substantial rise from the Shs 3.
56 billion recorded in the same period last year. This remarkable 500% growth reflects QCIL’s robust performance across key customer segments. The company’s revenue also surged from Shs 121.
1 billion to Shs 152 billion, driven by strong demand from sovereign and institutional clients. Emmanuel Katongole, QCIL’s Chairman and Co-Founder, along with Chief Executive Officer Ajay Kumar Pal, noted that orders from sovereign clients increased by 35.7%, adding Shs 31.
6 billion, while institutional orders rose by 35.2%, contributing an additional Shs 8.3 billion.
However, private market growth was tempered slightly by Cipla Limited’s decision to discontinue its import business. QCIL’s gross profit margin rose from 21.7% in H1 FY24 to an impressive 38.
6% in H1 FY25, fueled by enhanced manufacturing efficiencies, disciplined raw material cost management, and a favorable shift in product mix. The company saw significant growth in its antiretroviral (ARV) segment, with ARVs comprising 75.9% of total sales in H1 FY25, up from 43.
9% the previous year, while anti-malarial drugs (ACTs) shifted from 53.1% to 24.1% of sales.
Aligned with its growth objectives, QCIL has launched a long-term incentive program for selected employees, recording an initial provision of Shs 2.0 billion for FY24. This initiative aims to foster employee engagement and aligns team performance with the company’s ambitious strategic goals.
QCIL generated Shs 9.2 billion in operating cash flow for H1 FY25, reflecting strong operational performance and returns from short-term investments. The company maintained a conservative financing approach, with net cash used in financing activities totaling Shs 15.
0 billion, mainly attributed to its FY24 dividend payout. In recognition of its solid performance, QCIL declared an interim dividend of Shs 3.5 per share, payable on or before December 12.
In response to rising demand, QCIL’s Board has approved the construction of a second production facility at its Kampala site. This expansion will increase production capacity for QCIL’s current portfolio and enable entry into new treatment areas, including tuberculosis treatments, injectables, and other innovative products. Set to be debt-financed, the new facility will bolster QCIL’s role as the region’s leading producer of WHO-prequalified HIV/AIDS and malaria treatments, reinforcing its commitment to advancing healthcare in East Africa.
With its strong growth trajectory and expanded infrastructure, QCIL is well-positioned to continue meeting the healthcare needs of Uganda and the broader region..
