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The company hopes to increase tablet production from 1.4bn to 2.4bn annually
Kampala, Uganda | THE INDEPENDENT | Uganda’s largest pharmaceutical manufacturer, Quality Chemical Industries Ltd (QCIL), has secured a US$36 million (Shs133 billion) financing facility from Stanbic Bank Uganda to construct a second production facility, capitalising on a strong financial performance to drive regional expansion.
The new plant, to be located at QCIL’s existing site in Luzira, Kampala, will significantly scale the company’s output—raising annual tablet production from 1.4 billion to 2.4 billion. It will also enable the firm to enter new therapeutic areas, including tuberculosis (TB) treatments and injectable medications, amid widespread gaps in local production.
The move follows a robust financial year, in which QCIL reported a 26% year-on-year rise in profit after tax to Shs 40 billion for the period ending March 2025, up from Shs 31.7 billion last year.
The growth was supported by improved operational efficiencies, a more profitable product mix, and a one-time Shs 3.5 billion recovery from the Government of Zambia.
“We are strengthening our capacity to serve not only Uganda but also the wider African market with high-quality, affordable medicines,” said Emmanuel Katongole, QCIL’s co-founder and chairman.
“Our commitment remains focused on providing sustainable healthcare solutions. With Stanbic’s support, we are positioning ourselves to meet increasing regional demand and reduce dependency on imported medicine.”
The financing, arranged by Stanbic Bank’s Corporate and Investment Banking division, comprises a term loan earmarked for the construction of a second World Health Organization (WHO)-compliant production plant.
According to QCIL Chief Executive Officer Ajay Kumar Pal, the facility will position the company as the region’s sole manufacturer of TB medications.
“Our strategy is rooted in producing essential medicines in Africa for Africans,” Pal said. “This investment marks a significant step forward in addressing the continent’s dependency on imports, especially for treatments like TB, where over 600,000 cases are reported annually in the region and yet there’s zero local manufacturing.”
Stanbic Bank Uganda hailed the transaction as a strategic breakthrough. “This is a milestone deal—ambitious in scale, catalytic in purpose. We are honoured that QCIL entrusted us with such a strategic mandate,” said Mumba Kalifungwa, the Chief Executive Officer at Stanbic Bank. “We are proud to back QCIL in a venture that not only delivers shareholder value but also advances public health outcomes.”
Financial results for FY25 reflect a company in solid operational health. While revenues rose marginally to Shs 267.1 billion from Shs 265.3 billion in the prior year, gross profit margin expanded sharply to 40.6%, from 33.7%, buoyed by a shift toward higher-margin antiretroviral (ARV) drug sales. ARVs accounted for 76.3% of total sales, up from 59.9% in FY24, while antimalarial therapies (ACTs) declined to 21.6% from 38.0%.
General and administrative expenses climbed 14.8% to Shs 52.5 billion, reflecting higher licensing costs, the implementation of a new staff incentive programme, and inflationary pressure. Nonetheless, the company maintained a positive earnings trajectory, posting Shs 58.4 billion in profit before tax—excluding the Zambia payment—a 22.1% increase from the previous year.
Dividend payout doubles
In light of the strong performance, QCIL’s board recommended a final dividend of Shs 6.0 per share, bringing the total payout for FY25 to Shs 13.5 per share. This marks more than a two-fold increase from Shs 5.7 per share in the previous year. The proposed dividend remains subject to shareholder approval and applicable withholding taxes, based on shareholder domicile and structure.
Founded in 2005, QCIL remains the only WHO pre-qualified manufacturer of HIV/AIDS and malaria treatments in the region. With its products registered in 31 African countries, the company continues to play a critical role in the continent’s health security architecture.
