Industry de-growth resulted in a Net Sales reduction of 5% in Half 1 due to macro-economic challenges Operating EBIT reached mBDT 3466, representing 25% decline attributed to increased costs and the sharp devaluation of Bangladesh Taka (BDT).
Operational excellence and efficiency activities continued to protect leading industry margin.
Iqbal Chowdhury, CEO of the company said: “Bangladesh economy is going through certain challenges which is affecting the construction industry resulting decline in Sales Growth during the Half 1 of 2024. However, our focus for sales channel expansion, stronger aggregates performance, digitalization and addressing the waste challenges through Geocycle remained consistent. With continuous emphasis on Agility, Cost & Innovation we are confident to demonstrate solid performance in the quarters to come.”
Business Performance: In Half 1 (Jan-June), 2024 Operating EBIT reached mBDT 3,466, 25% less than the same period of the last year. Net sales decreased by 5% to mBDT 14,419 compared to mBDT 15,256 in Half1, 2023. Earnings per Share (EPS) declined by 33% to BDT 2.09 from BDT 3.11.
Geocycle, the leading provider of sustainable, circular waste management solutions is continuing to offer long-term solutions to the country’s waste management challenges. More than 23,000 tons of diverse waste streams were safely disposed-off during this period accelerating the green growth agenda of the company. The company has started receiving solid waste from the Sylhet City Corporation (SCC) with the aim to sustainably manage the Municipal Solid Waste (MSW) of the city which shall play an important role in increasing the Thermal Substitution Rate (TSR) for the rest of the year.
Outlook: The rest of the year will be challenging due to ongoing inflation and persisting foreign exchange pressure. Despite that, we are optimistic and well poised to continuously deliver a strong performance with leading industry margin.
