Kampala – Quality Chemical Industries Limited (Qcil or the Company), Uganda’s leading pharmaceutical manufacturer, has announced its unaudited financial results for the six months ended 30 September 2025, highlighting solid business performance, key regulatory milestones, and continued progress on its expansion strategy.
Expanding Access and Capacity
Qcil continues to strengthen its leadership in the local manufacture of high-quality, affordable medicines. During the first half of the financial year (H1 FY26), the Company launched 16 new products in the private market, spanning anti-malarials, anti-diabetics, anti-hypertensives, antibiotics, anti-fungals, and anti-allergics, further advancing its mission to improve health outcomes through innovation and accessibility.
In H1 FY26, the World Health Organisation (WHO) conducted its triennial audit of Qcil. The successful conclusion of the audit reaffirms Qcil’s commitment to meeting global pharmaceutical quality benchmarks and validates the Company’s strong manufacturing systems, technical expertise, and quality assurance processes. Qcil remains one of the few facilities in the region to meet WHO Current Good Manufacturing Practices (cGMP), the standard required to be eligible to supply Global Fund and certain other institutional buyers.
Following the recent groundbreaking ceremony marking Qcil’s 20th anniversary, construction has commenced on the Company’s second manufacturing facility in Luzira. This strategic investment will more than double annual production capacity to 2.4 billion tablets and introduce injectable and tuberculosis product lines, further cementing Qcil’s position as a regional hub for quality pharmaceutical manufacturing.
“This expansion underscores our unwavering commitment to health, innovation, and economic empowerment,” said Mr Emmanuel Katongole, Chairman and Co-founder of Qcil. “We are investing in Africa’s self-reliance in pharmaceutical manufacturing and in the well-being of our communities.”
Strong Financial Performance
Qcil delivered another robust half-year performance, with revenue of UShs148.2 billion (H1 FY25: UShs152.2 billion), reflecting a slight 2.6% decline, primarily due to the appreciation of the Ugandan Shilling against the US Dollar. On a constant currency basis, revenue would have grown by 1.6%.
The Company’s gross profit margin strengthened to 42.4% from 38.6% in 1H FY25. The strong gross margin reflects, inter alia, global competition and dynamic pricing for Qcil’s products and key inputs, such as active pharmaceutical ingredients, as well as the product mix. The Company noted that shareholders should exercise caution in assuming that these margins will be sustained.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose by 4% to UShs 38.3 billion, up from UShs 37.0 billion in the first half of FY25. Profit before tax increased by 6.2%, driven primarily by an improved gross profit margin. Net profit registered a robust growth of 8.2%, closing at a record UShs 23.9 billion, underscoring the company’s continued operational discipline and efficiency gains.
The Board of Directors has declared an interim dividend of UShs4.2 per share (H1 FY25: UShs3.5 per share), payable on or before 5 December 2025 to shareholders on the register as of 25 November 2025. The dividend, subject to applicable withholding tax, has been determined in line with Qcil’s dividend policy, balancing shareholder returns with reinvestment to support future growth. The Company noted that this payout does not establish a precedent for future dividends, given its ongoing expansion programme.
Building on its solid operational performance, Qcil continues to translate financial strength into sustainable impact, expanding capacity, driving product innovation, and reinforcing its reputation for quality and reliability across Africa’s pharmaceutical landscape. The Company remains alert to emerging risks, including global price erosion, currency volatility, and uncertainty in funding from major institutional customers, to safeguard long-term business resilience.
“The first half of FY26 demonstrates our operational discipline and continued focus on efficiency,” said Mr Ajay Kumar Pal, Chief Executive Officer of Qcil. “We are focusing on growth while building a stronger foundation for long-term expansion across Uganda and the region. We continue to manage emerging risks such as global pharmaceutical price erosion and uncertainty in funding from major multilateral institutional customers.”
Outlook
The Board and Management remain optimistic about the outlook for the second half of FY26. Qcil will continue to prioritise capacity expansion, product diversification, and operational efficiency, while executing strategic projects that drive growth and value creation for patients, partners, and shareholders across Africa.