Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
LafargeHolcim Bangladesh secured a 20 per cent year-on-year growth in profit to Tk 967 million in the April-June quarter this year, driven by higher sales amid growing customer confidence.
The multinational cement manufacturer's earnings per share (EPS) rose to Tk 0.83 in the second quarter through June this year from Tk 0.69 in the same quarter a year ago.
The board of directors of the company approved its quarterly financial statements on Wednesday, according to a press release.
The company's sales grew 5 per cent year-on-year to Tk 6.47 billion in the quarter to June, demonstrating a remarkable resilience and strategic success in a challenging market.
"We achieved solid volume growth in cement and aggregates, driven by strong market demand and growing customer confidence," said Md Iqbal Chowdhury, chief executive officer of LafargeHolcim, in a statement.
LafargeHolcim's commitment to making international-standard cement available in local markets and responses to specialised cement products and new brands played an encouraging role in the financial results, the company said.
Specialised cement products -- 'Water Protect' and 'Fair Face' -- recorded an impressive 28 per cent growth in sales, underscoring a clear consumer preference for value-added solutions, said Mr Chowdhury.
The company's sales revenue in January-June this year also climbed 4 per cent year-on-year to Tk 14.98 billion. However, half-yearly profit dropped slightly -- by 3 per cent year-on-year -- to Tk 2.36 billion as a year-on-year decline in profit in Q1 offset the growth achieved in Q2.
The company's operating profit of Tk 29.68 billion in January-June was down by 14 per cent from the same period last year, mainly due to inflation and a decline in cement prices.
Half-yearly profitability was partially eroded by rising energy costs and falling cement prices, prompting cost-efficiency measures and strategic pricing reviews, said the CEO of LafargeHolcim.
"Despite the current challenges, we remain optimistic about improved performance in the upcoming quarters," Mr Chowdhury said.
"Our innovation and diversification efforts continued to yield results, including co-processing over 21,000 tonnes of waste via Geocycle, replacing 11 percent of fossil fuels."
The company has continued to prioritize operating efficiency, product portfolio diversification, and pricing strategy enhancement to bolster profitability in the upcoming quarters, the CEO said.
"At the same time, ongoing investments in sustainability and digital transformation are set to reinforce our long-term competitive advantage."
The company performed well in terms of sales due to its new business segments, including aggregates and special products.
"With a steadfast commitment to operational excellence, cost optimization, and innovation, we remain confident in delivering strong results in the future," said Mr Chowdhury.
Listed in 2003, the stock of LafargeHolcim rose 2.16 per cent to Tk 56.8 per share on Wednesday on the Dhaka Stock Exchange (DSE).
Industry insiders say LafargeHolcim has the edge in business over peers as it depends on its own source of core raw material - limestone, which is transported from mines in Meghalaya to its factory in Chhatak, Sylhet by a conveyor belt.
This advantage creates an opportunity for the company to avoid freight charges and escape international raw material market volatility.
Meanwhile, LafargeHolcim and Jalalabad Gas Transmission and Distribution System signed two new Gas Sales Agreements (GSAs) in June this year - one for industrial use and another for captive power - for 10 years effective from January 18, 2026.
babulfexpress@gmail.com