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LafargeHolcim Bangladesh witnessed a 53 per cent year-on-year decline in profit in the second quarter through June (Q2) this year due to lower sales amid lingering macro-economic challenges.
The cement manufacturer's sales dropped 8 per cent year-on-year to Tk 6.16 billion in the quarter, according to its financial statements published on Tuesday.
Company officials say high inflation squeezed the sales revenue as people were reluctant to spend money on not-so-necessary things.
"The economy is going through certain challenges that are affecting the construction industry," 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 focus on the expansion of sales channels, aggregates business, new products and solutions and has improved market presence.
LafargeHolcim's half-yearly sales also fell 5 per cent year-on-year to Tk 14.42 billion in the January-June period this year while profit dropped 33 per cent to Tk 2.43 billion during the time.
Its earnings before interest and taxes (EBIT), which indicate a company's profitability, also dropped 25 per cent year-on-year to Tk 3.46 billion in January-June because of increased costs and the sharp devaluation of the local currency against the dollar.
In line with LafargeHolcim's green growth agenda, more than 23,000 tons of diverse waste streams were safely disposed of during the January-June period.
The company has launched a material recovery plant in Sylhet in association with the Sylhet City Corporation with an aim to sustainably manage municipal solid waste.
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 2003 listing.
Meanwhile, the stock price rose 0.16 per cent to Tk 62 per share on the Dhaka Stock Exchange on Tuesday. It had never remained stuck on the floor and traded at Tk 57.3 per share to Tk 82.8 per share in the last two years.
LafargeHolcim is a frontline building material solutions provider in Bangladesh, operating for more than two decades, and invested $500 million, the largest foreign direct investment in the sector. It is a joint venture of Holcim Group based in Switzerland and Cementos Molins based in Spain.