Special Correspondent
LafargeHolcim Bangladesh (LHBL), the multinational cement maker, posted a 36% year-on-year fall in profit in the last calendar year 2024 as the economy is going through certain challenges that are affecting the construction industry, resulting in a decline in the company's sales growth.
The publicly traded company's net profit declined to Tk 381 crore in the January-December period this year, from Tk 594 crore recorded in2023, as per its financial statements disclosed on Wednesday.
In the year, its net sales decreased by 3% to Tk 2,754 crore compared to Tk 2,838 crore in 2023.
The company's Earnings Per Share (EPS) declined by 36% to Tk 3.29 from Tk 5.12 at the same time last year.
On October 2024, the Board of Directors of the company recommended an interim dividend of nineteen percent (19%) in cash, on the paid-up capital of the Company, out of the first nine (9) months' profit of 2024 (from January 1, 2024 to September 30, 2024). At Tk 1.90 per share of Tk 10.00 each, the interim dividend amounted to Tk 220 crore.
On 12 March, 2025, the Board of Directors of the company recommended a final dividend of nineteen percent (19%) in cash. The total dividend is 38% of the paid-up capital amounting to Tk 441 crore which is Tk 3.80 per share of Tk 10 each for the year ended on December 31, 2024.
Iqbal Chowdhury, CEO of the Company said that Bangladesh experienced an eventful year in 2024, yet the company successfully navigated the challenges. It has progressed in its innovative and unique channel expansion through Direct-to-Retail and net retail outlets.
The contribution of special products also increased to 8% of the total revenue. Operating profit from new business in Aggregates grew by 25%. Through its global platform Geocycle, the Company co-processed more than 45,000 tons of diverse waste streams, which substituted more than 10% fossil fuels to accelerate the green growth agenda of the company, he said.
He also said that looking ahead, we are prioritising the expansion of sales channels, further advancing digitization throughout our operations, more focus on Aggregates business and expansion of sustainable waste co-processing through our Geocycle division. With a steadfast commitment to operational excellence, cost optimisation, and innovation, LafargeHolcim Bangladesh PLC remains confident in delivering strong results in the future."
LafargeHolcim Bangladesh posted a 33% year-on-year fall in profit in the first half of the calendar year 2024. Its net profit declined to Tk 243 crore in the January-June period this year, from Tk 361 crore recorded in H1 of 2023. The company's Earnings Per Share (EPS) declined by 33 per cent to Tk 2.09 from Tk 3.11 at the same time last year. LHBL shares closed at Tk 48.90 each at the Dhaka Stock Exchange on Wednesday.
According to industry insiders, all cement manufacturers in the country have to import raw materials. Only LHBL produces them on its own. As a result, the company's cost of cement production is significantly lower than its peers.
The company paid a 50% cash dividend to its shareholders for the year that ended in December 2023, the highest since its inception in Bangladesh.