LafargeHolcim Bangladesh profit drops 45% in Jul-Sep
The multinational company said its profits declined to Tk87.8 crore in the third quarter, which was Tk159.9 crore in the same period last year
LafargeHolcim Bangladesh Ltd, a frontline building material solutions provider, has announced a sharp 45% decline in profit and a 2% drop in sales in the July-September quarter of 2024, due to ongoing macroeconomic challenges affecting the construction industry.
In a statement issued Monday (21 October), the multinational said its profit for the third quarter dropped to Tk87.8 crore, which was Tk159.9 crore in the same period last year.
Its revenue also fell to Tk627 crore, which was Tk639 crore in the same time of the previous year, the statement read.
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Despite the profit decline, the board of directors declared a 19% interim cash dividend, amounting to Tk220.66 crore, based on the financial results for the period ending in September.
The company has also set the record date for the interim dividend as 11 November.
Meanwhile, in the first nine months of this year, LafargeHolcim's sales decreased by 4% to Tk2,069 crore compared to Tk2,164 crore in the same period of the last year.
During the same period, its profit declined by 37% year-on-year to Tk330 crore and the earnings per share (EPS) stood at Tk2.85.
In the press release, LafargeHolcim Bangladesh CEO Iqbal Chowdhury said, "Amidst the broader economic challenges impacting the construction sector in the country, I am proud to share that LafargeHolcim has demonstrated resilience and stronger performance in the industry.
"We are strategically focusing on expanding our sales channels, strengthening the aggregates business, advancing digitalisation and eco-friendly waste co-processing through our Geocycle wing."
He added that the company remains committed to cost optimisation and innovation, which he believes will help deliver robust results in the future.
"The rest of the year will be challenging due to the high inflation and the deficit in foreign currency. Despite that, we are optimistic and well poised to deliver a resilient performance with leading industry margin," he said.
The company's share price closed at Tk54.70 each yesterday at the Dhaka Stock Exchange.
LafargeHolcim's sustainable waste management initiative Geocycle offers long-term solutions to the country's waste management challenges.
In the statement, the company said more than 32,000 tonnes of diverse waste streams were safely disposed of during this period, accelerating the green growth agenda of the company.
LafargeHolcim Bangladesh is a joint venture of Holcim Group based in Switzerland and Cementos Molins of Spain.
Operating for more than two decades in the country, the company has invested $500 million in building one fully integrated cement plant and three grinding stations, the largest foreign direct investment in the sector.
