LafargeHolcim experienced a double digit year-on-year decline in profit in January-March this year, owing to a lower operating income.
Its operating profit fell 13 per cent to Tk 2.12 billion in the first quarter through March, compared to the same quarter of the previous year. At the same time, revenue slid 3 per cent year-on-year in the quarter.
Company officials said high inflation squeezed the revenue income while people were reluctant to spend money on not-so-necessary things.
During the time, finance costs advanced a whopping 387.5 per cent year-on-year to Tk 78 million. The cost of sales rose too marginally.
“The construction industry is going through a challenging time, with a consistently high inflationary environment impacting consumption,” said Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh in a press statement. He, however, expressed optimism that the company will see better results in the quarters to come as the company has continued its focus on the expansion of sales channels, aggregates business, new products and solutions and has improved market presence.
In line with its green growth agenda, more than 10,000 tons of diverse waste streams were safely disposed off during the January-March quarter, which was 25 per cent higher than the same period last year.
LafargeHolcim has launched a material recovery plant in Sylhet in association with the Sylhet City Corporation with an aim to sustainably manage municipal solid waste.
Meanwhile, the company has recommended 50 per cent final cash dividends for all shareholders for the year ended in December 2023.
In the year, the company experienced a 33 per cent year-on-year growth in earnings.
The share price of LafargeHolcim, a blue chip stock, exhibited an upward trend between November last year and March this year.
During the period, the stock rose 11 per cent to Tk 74.90 per share on the Dhaka Stock Exchange.
Later, the price came down to Tk 63.4 per share on April 25 and finally closed at Tk 65 per share on Monday.
