LafargeHolcim profit surges 34pc despite construction slowdown

LafargeHolcim Bangladesh, a leading multinational cement producer, posted a 34 per cent year-on-year growth in profit for the full year 2025, driven by higher sales volumes of premium cement products and solid expansion in its aggregates business. 

The multinational cement producer reported a profit after tax of Tk 5.11 billion for the year ended December 2025, up from Tk 3.82 billion a year earlier, according to a company statement issued on Wednesday.

The strong performance came despite headwinds in the broader construction industry, including reduced public sector spending and tighter private credit conditions that slowed overall sector activity.

The company's net sales for the year rose 6 per cent year-on-year to Tk 29.31 billion, supported by steady business momentum and stronger customer engagement.

Its earnings per share (EPS) rose to Tk 4.40 in 2025 from Tk 3.29 in 2024.

Based on the improved performance, the company's board of directors recommended a total cash dividend of 40 per cent for 2025, including an 18 per cent interim dividend that has already been paid.

The board also approved the audited financial statements at a meeting on Wednesday.

The company attributed the growth primarily to higher sales volumes of premium cement products and solid expansion in its aggregates business.

"The broader construction industry faced headwinds in 2025 from subdued public sector investment and constrained private credit growth. Yet LafargeHolcim Bangladesh delivered a strong performance," said Iqbal Chowdhury, chief executive officer of LafargeHolcim.

"Our ability to achieve volume growth in both the cement and aggregates segments reflects the continued confidence of customers in our products and services," he added.

LafargeHolcim's commitment to making international standard cement available in local markets with excellent market reputation and responses to specialised cement products and new brands played an encouraging role in the financial results.

"Specialised cement products such as Water Protect and Fair Face recorded strong growth, highlighting increasing consumer preference for premium construction solutions," said LafargeHolcim CEO.

The company also expanded its product portfolio at the start of 2026 with the launch of Holcim Coastal Guard and Powercrete, targeting coastal infrastructure projects and the ready-mix concrete segment.

LafargeHolcim said it advanced its sustainability initiatives through its Geocycle waste management platform, co-processing more than 45,000 tonnes of non-recyclable materials and replacing about 11 per cent of fossil fuels with alternative fuels.

While profitability faced pressure from rising energy costs and market volatility, the company implemented cost-efficiency measures and strategic pricing adjustments to mitigate the impact.

Looking ahead, LafargeHolcim said it will focus on operational efficiency, product diversification, and expanding the use of alternative fuels to strengthen profitability and maintain its market position.

"We are also investing in sustainability and digital transformation to reinforce our long-term competitive advantage and ensure sustained market leadership," Chowdhury said.

LafargeHolcim produces clinker and cement under the Supercrete and Holcim brands at its Chhatak plant in Sunamganj -- the country's only fully integrated dry-process cement plant.

The company's aggregates business has grown rapidly, registering a 46 per cent compound annual growth rate over the past three years and now contributing around 20 per cent of total revenue.

Industry insiders say the company holds a competitive advantage as it sources limestone from its own mines in Meghalaya, India, transported directly to its Chhatak plant via a cross-border conveyor belt, reducing freight costs and exposure to global raw material price volatility.

Listed on the stock exchange in 2003, LafargeHolcim shares fell 0.59 per cent to Tk 50.60 on Wednesday on the Dhaka Stock Exchange.

The company is a joint venture between Switzerland-based Holcim Group and Spain's Cementos Molins and has invested about $500 million in Bangladesh. Presently, the company has two subsidiaries in India. The main objectives of the subsidiaries are to support the holding company.

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