Premier Cement returns to profit in FY24

Premier Cement Mills PLC, one of the leading cement makers in Bangladesh, returned to profit in FY24 riding on higher sales and reduction of raw material prices, after suffering losses in the past two consecutive years.

The cement maker made a profit of Tk 742 million in FY24 while it suffered a loss of Tk 842 million in FY23.

As a result, its consolidated earnings per share (EPS) stood at Tk 7.04 in FY24, as against loss of Tk 7.99 per share in the year before, according to a stock exchange filing on Monday.

The top-tier cement producer also incurred a loss of Tk 1.12 billion in the FY22, mainly for higher costs of raw materials alongside sharp depreciation of taka against dollar.

A company official said the reduced foreign exchange losses and starting operation from a new factory unit helps Premier Cement to produce cement at a low cost, which increases its capability of doing business amid intensive competition.

The new plant was set up by using a vertical roller mill which is an updated technology for the cement industry. VRM technology allows high-quality cement production at a low cost and in a small space.

Based on the profit, the board of cement maker declared a 21.5 per cent cash dividend for FY24. In FY23, it paid a 10 per cent cash dividend.

The company set an annual general meeting (AGM) on November 30 and the record date for entitlement of dividend is November 7.

The company’s consolidated net asset value per share stood at Tk 65.37 and consolidated net operating cash flow per share of Tk 6.27 for the year ended June 30, 2024 as against Tk 59.33 and Tk 5.84 respectively for the year ended June 30, 2023.

Listed in 2013, the cement producer’s stock price rose 4.19 per cent to Tk 64.6 after two hours of trading at 12:00 noon at the Dhaka Stock Exchange.

[email protected]