LafargeHolcim shines while peers in reverse 

Infographic: TBS

LafargeHolcim Bangladesh reported the highest profit in its history in 2022, while its local peers in the cement industry suffered profit erosion brought on by rising business costs.

Also, the multinational cement manufacturer approved a record 48% cash dividend, of which 33% have already been paid as interim dividends and 15% have been declared as final dividends.

The company approved its financial accounts for 2022 and decided to pay the dividends at a board meeting on Thursday.

According to a press release, its year-on-year revenue grew over 15% to Tk2,359 crore, and the net profit also surged by 15% to Tk445 crore in 2022. The revenue and profit figures were the highest in its history until last year.

Since the beginning of last year, the country's entire cement industry has suffered because of high raw material, energy, and fuel prices, global supply chain disruptions, and a strong dollar caused by the Russia-Ukraine war.

As a result, out of the seven listed cement companies, three posted declines in profit and two incurred losses. Another has yet to disclose its financials. However, it was in losses till September. But despite such gloomy conditions, LafargeHolcim fared well.

Iqbal Chowdhury, new chief executive officer of LafargeHolcim, said in a press release, "2022 was a commendable year for the company, as we delivered record performance both in profitability and cash generation.

"We launched new sustainable products, like 'Supercrete Plus,' which ensured growth in the aggregates business, increased our digital footprint, and gained traction in our new business channels."  

He further said that 2023 will be another challenging year as geopolitical uncertainty and inflationary pressure will continue. "Despite that, we are optimistic that we will continue to deliver strong performance, as we demonstrated in the previous years."

According to industry insiders, all cement manufacturers in the country have to import raw materials. Only LafargeHolcim produces raw materials on its own. As a result, the company's cost of cement production is significantly lower than that of local companies.

Despite a good business year, its share price did not keep up with its performance. Its shares have traded on the floor at Tk64.80 each since February at the Dhaka Stock Exchange.