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LafargeHolcim Bangladesh witnessed a 45 per cent year-on-year decline in profit in the third quarter through September (Q3) this year due to lower sales amid lingering macro-economic challenges.
The cement manufacturer's sales dropped 2 per cent year-on-year to Tk 6.27 billion in the quarter, according to its financial statements published on Monday.
Earnings per share (EPS) fell to Tk 0.76 in the July-September quarter this year from Tk 1.38 in the same quarter a year before.
Company officials say the challenging macro-economic environment and high inflation are crucial factors behind the dwindling sales as people are reluctant to spend money on not-so-necessary things.
"Broader economic challenges are impacting the construction sector in the country," said Md Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, in a statement.
The industry will face similar hurdles in the rest of the year, owing to high inflation and persistent foreign exchange pressure, he added.
Mr Chowdhury, however, expressed optimism that the company will see better results in the quarters to come as it has continued its focus on the expansion of sales channels, aggregates business, new products and solutions and has improved market presence with eco-friendly waste co-processing through Geocycle wing.
"With our unwavering commitment to agility, cost optimization and innovation, we are confident to deliver robust results in the days to come," he said.
Despite the sharp fall in profit, the board of directors of the multinational cement manufacturer announced a 19 per cent interim cash dividend, meaning investors will get Tk 1.9 per share.
The cement maker will disburse Tk 2.20 billion as interim cash dividends against a profit of Tk 3.30 billion in the nine months through September this year.
LafargeHolcim's nine-month's sales slid 4 per cent year-on-year to Tk 20.69 billion in January-September this year while profit plunged 37 per cent to Tk 5.21 billion during the time.
Its earnings before interest and taxes (EBIT), which indicate a company's profitability, plummeted 28 per cent year-on-year to Tk 4.76 billion in January-September.
Geocycle, the waste management wing of the company, continues to offer long-term solutions to worries over waste management.
As of September this year, the company co-processed more than 32,000 tonnes of diverse waste streams, striving to meet its green growth agenda. This resulted in a 10.25 per cent Thermal Substitution Rate (TSR) for the company.
In 2023, the company's annual sales soared 20 per cent year-on-year to 28.38 billion while profits jumped 34 per cent to Tk 5.94 billion, riding on cost management and diversified products.
The cement maker paid a 50 per cent cash dividend for 2023, the highest since its listing in 2003.
Meanwhile, the stock fell 0.36 per cent to Tk 54.7 per share on the Dhaka Stock Exchange on Monday. It had never remained stuck on the floor during the floor price regime.