LafargeHolcim Bangladesh profit drops 15% in Jan-Mar
Its revenue also fell by 3% to Tk825 crore during the quarter.
Persistent high inflation led to slower sales for LafargeHolcim Bangladesh in the first quarter of 2024, negatively impacting its profits.
On Mondday (13 May), the company in a statement said its profits declined by 15% to Tk162 crore in the January-March quarter, compared to the same period last year.
At the same time, its revenue fell over 3% year-on-year to Tk825 crore, the statement read.
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"The construction industry is going through a challenging time, with a consistently high inflationary environment impacting consumption," Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said.
"However, we continued our focus on the expansion of sales channels, aggregates business, new products and solutions and improved market presence to ensure stronger results in the quarters to come," he said.
He further added, "We also have entered into the bricks and blocks market by launching Holcim Blocks, which is environment friendly and has a growth potential in the market.
"The rest of the year will be challenging due to the ongoing inflation and persisting foreign exchange pressure. Despite that, we are optimistic and well poised to continuously deliver strong performance with leading industry margin."
Earlier, LafargeHolcim's net profit crossed the Tk500 crore mark in 2023, which also for the first time in its history.
The company that year paid a 50% cash dividend to its shareholders, the highest payout in its history.
Its share price closed at Tk65 on Monday, slightly lowered from the previous session at the Dhaka Stock Exchange.
LafargeHolcim Bangladesh, a frontline building material solutions provider in the country, 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. The company has provided direct and indirect employment opportunities for over 3,000 people.
