LafargeHolcim profit grows 39%
Both cement and aggregate businesses of the multinational company boom
LafargeHolcim Bangladesh Ltd posted Tk170.7 crore in net profit after taxes for the April-June period this year, up from Tk123 crore for the same period last year.
Analysts attributed the earnings momentum to better performance from both its cement and aggregate selling wings.
For the three months through June, the multinational company earned a revenue of Tk671 crore, which was 34% higher than a year ago.
Analysts said cement prices went up by 5-10% during the three months, helping LafargeHolcim register a 27.6% year-on-year revenue growth from its main business of cement manufacturing and selling.
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On the other hand, its lucrative new business of making aggregates out of the limestone sourced from its own mines in the Meghalaya state of India and selling them in the local market kept growing.
Aggregate business revenue in the last quarter grew 75% year-on-year to Tk109.8 crore, representing 16.4% of the total quarterly revenue. A year ago, 12.5% of LafargeHolcim's revenue was contributed by the aggregate business.
Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said, "With continuous emphasis on agility, cost, and innovation, we demonstrated strong performance in the second quarter of 2023, setting a solid foundation for the rest of the year."
"Our diverse product portfolio, efficient route to market, digital footprint, pan Bangladesh distribution network, and aggregates business played a significant role in ensuring the healthy growth momentum," he added.
In a statement, he also mentioned Geocycle, the sole government-approved waste management facility of the company, serving both the company and the nation's commitment to a zero-waste future, reducing carbon emissions while generating alternate fuel sustainably.
LafargeHolcim Bangladesh has been experiencing a positive cycle of profitability since 2021, as the Meghalaya mines became a significant competitive edge for the company in terms of raw material sourcing.
While other companies faced higher costs for carrying raw materials due to freight hikes and global sourcing prices, LafargeHolcim Bangladesh stood apart, benefiting from its subsidiary-owned limestone quarry in Meghalaya, with raw materials conveniently reaching its Chaatak, Sylhet factory.
LafargeHolcim Bangladesh shareholders nowadays are receiving higher dividends than before. The company's shares closed 0.29% lower at Tk69.3 apiece on Thursday on the Dhaka Stock Exchange.
