Source: Observer

LafargeHolcim profit rises by 90pc to Tk 2,432m in Q1'23 LafargeHolcim Bangladesh Ltd (LHBL) operating profit before interest and taxes (EBIT) reached Tk 2,432million a significant increase of 90 per cent in first quarter (January-March) of 2023 despite challenging market conditions.Net sales growth of 37 percent backed by new products and innovative solutions during the perios, says a press release. Iqbal Chowdhury, CEO of the company said: "The first quarter's performance demonstrates the strength of our diverse product portfolio and strategic presence driven by innovative products, high-value solutions, digital footprint and new channels. "We are also supporting our customers with sustainable waste management solution through Geocycle. I wholeheartedly thank all employees of LafargeHolcim Bangladesh along with our valued channel partners and stakeholders for this strong start to the year."In the given market context, we shall continue to focus on expansion of channels, aggregates business, new products and solutions in the market and at the same time enhance our digital footprint in Bangladesh to ensure sustainable growth."Operating EBIT reached Tk 2,432 million -a growth of 90percent over last year. Net sales increased by 37 percent to Tk 8,546million compared to Tk 6,259 million in 2022. Earnings per share (EPS) increased by 102percent to Tk 1.64compared to Tk 0.81in 2022.Geocycle continued to offer a long-term solution to country's waste management challenges. More than ~8,000 tons of diverse waste streams were safely disposed of during this period that clearly accelerated the green growth agenda of the company. Our journey for cost leadership remained as a focal point during the quarter and had a very positive impact on the overall result. The rest of 2023 will be challenging as geopolitical uncertainty and inflationary pressure continues. Despite that we are optimistic and well poised to deliver strong performance, as we demonstrated in the previous quarters.With its grip on global standards and strength in innovations, LafargeHolcim Bangladesh Limited is also regarded as a dependable solution provider in construction materials. It is producing and supplying customized cement for high profile projects in the country.§ Commerce Secretary Tapan Kanti Ghosh has said that Bangladesh may have to face different impediments in exporting readymade garments (RMG) in the post-LDC (least developed country) graduation era."So, we have to ensure some policy supports to continue the trend in RMG exports as well as competitiveness in the global market," he said while addressing a validation workshop titled: "Study on policy support and incentives before and after LDC graduation for RMG sector" at Bangladesh Foreign Trade Institution (BFTI) on Sunday.With BFTI CEO Md Jafar Uddin in the chair, the event was also addressed by Export Promotion Bureau (EPB) vice chairman AHM Ahsan while BFTI director general Md Obaidul Azam conducted the function.Jafar Uddin said the optimum use of the incentives and subsidy in the RMG exports should be fully ensured before the LDC graduation.�UNB§US urged to allow duty-free access for BD garments made with its cottonBangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan requested the US government to allow duty-free access of Bangladesh garments made of the cotton imported from the US."This duty-free access would benefit both Bangladeshi RMG exporters and US cotton growers, thus creating a win-win situation," Faruque Hassan said in a meeting with US Ambassador to Bangladesh Peter Haas at BGMEA Complex at Uttara in the capital on Sunday.During the visit, the envoy was accompanied by Leena Khan, Labor Attach�, Department of Labor, Arturo Hines, Deputy Political Economic Counselor, Megan Francic, USDA/FAS, Agricultural Attach�, Kaitlyn Denzler, USAID/DRG Labor Team Lead, Emelda Mullick, USAID/DRG, Labor Team, and Saifuzzaman Mehrab, Political and Economic Section, Labor Assistant.BGMEA First Vice President Syed Nazrul Islam, Senior Vice President S.M. Mannan (Kochi), Vice President Shahidullah Azim, Vice President (Finance) Khandoker Rafiqul Islam, Vice President Md. Nasir Uddin, Vice President Rakibul Alam Chowdhury, Directors Abdullah Hil Rakib, Navidul Huq, Rajiv Chowdhury, Barrister Vidiya Amrit Khan, Md. Imranur Rahman, Mijanur Rahman and Neela Hosna Ara and chairmen of different standing committees of BGMEA were also present at the meeting.Their discussions focused on various issues of mutual interest aimed at strengthening trade ties between the USA and Bangladesh, particularly how the US could support Bangladesh in increasing apparel exports including high-end garments to the US market, said a press release.They also discussed various issues relevant to Bangladesh's RMG industry including its prospects and preparedness to continue the growth momentum.During the meeting, BGMEA President Faruque Hassan gave an overview of how the readymade garment industry of Bangladesh has made huge progress in terms of workplace safety, environmental sustainability, and workers' rights and welfare, boosting the confidence of global buyers in the apparels made in Bangladesh.He also highlighted how the massive safety initiatives coupled with trainings of workers jointly taken by the Government, brands, ILO and development partners transformed the garment industry of Bangladesh which has also made remarkable strides in the area of environmental sustainability, securing the leading position with the highest number of green garment factories in the world.He also briefed the U.S. Ambassador about the progress made by Bangladesh in terms of legal reforms aimed at ensuring labor rights and welfare.Faruque Hassan also appraised the envoy about the formation of Minimum Wage Board by the government of Bangladesh for garment workers' minimum monthly wages. The BGMEA President informed the U.S. Ambassador about the BGMEA's initiative to organize the Bangladesh Apparel Summit in the USA in October 2023 and requested him to expend support in organizing the event.He also appraised the envoy of BGMEA's initiatives of raising awareness among the garment manufacturers about intellectual property rights and counterfeit products.U.S. Ambassador Peter Haas praised the RMG industry of Bangladesh for its huge progress in ensuring workplace safety and workers' rights and welfare, stressing on the importance of carrying forward the accomplishments.He also expressed hope that Bangladesh's garment industry would continue its development initiatives in the coming days.§Biman Bangladesh secures funding for buying 10 AirbusBiman Bangladesh Airlines (BG, Dhaka) has secured funding to purchase ten Airbus aircraft after signing a joint communique with the United Kingdom that will allow it to access funds via the UK Export Finance scheme. The communique was signed in London on May 6 just days after the airline said it wanted to buy the planes, ch-aviation reported on Monday.Switzerland-bassed, ch-aviation is an influential airline intelligence provider and is proud to count hundreds of companies in the airline industry as its customers. "This deal demonstrates the UK's commitment to strengthening Bangladesh's aviation industry, in turn helping to create jobs in both countries," said Lord Dominic Johnson of Lainston CBE, the UK's minister of state in the Department for Business and Trade. Salman F Rahman, adviser to Bangladeshi Prime Minister Sheikh Hasina, signed on behalf of Bangladesh. The deal coincides with the prime minister's visit to the UK. The UK Export Finance scheme gives Bangladesh access to long term credit on easy deals, and follows active lobbying by Airbus to lock in an order, including sending demonstration aircraft to Dhaka.The precise nature of the aircraft order remains unclear, but officials from Bangladesh's Ministry of Civil Aviation have been briefing local media on a May 3 Biman Bangladesh board meeting and the decision to buy eight passenger and two freight aircraft, with the first two planes expected in 2026."The government plans to revive and regain the international aviation market following the Prime Minister's directives on turning the country into an aviation hub in the subcontinent. We have taken a policy decision to purchase 10 new state-of-the-art aircraft for Biman," said Mahbub Ali, the State Minister for Civil Aviation and Tourism."The decision to launch several new routes, including Japan and the United States, has already been taken. The procurement of the Airbus fleet is part of our plans for the region," said Shafiul Azim, Biman Bangladesh's Managing Director and Chief Executive Officer.Unnamed ministry officials are quoted saying Airbus was offering aircraft at around half their list prices. The prospective order is believed to involved A350s, including two A350Fs. However, Biman's board is yet to send technical information to the government, including details of the acquisition process and how they will pay for the planes. ch-aviation has contacted Biman Bangladesh Airlines for further information.After bringing the A350F to Dhaka in March, Airbus reportedly put several proposals in front of Biman Bangladesh and the government at the Bangladesh Aviation Summit held in the same month. According to the ch-aviation fleets advanced module, Biman Bangladesh's current fleet of 21 aircraft comprises six B737-800s, four B777-300(ER)s, four B787-8s, two B787-9s, and five DHC-8-Q400s. It last operated Airbus aircraft in 2016, when it phased out the final of six A310-300s.§ Bangladesh continues to have higher per capita GDP when compared to India till 2022, latest data from International Monetary Fund (IMF) revealed. However, India is estimated to have edge in the next two years over Bangladesh to take the lead again at least data till 2028, estimates by the agency indicated. The key reason for such a trend for Bangladesh could be higher growth boosted by strong external demand. Also, the country has not faced contraction even during Covid-19.Though India has recorded fastest growth, it faced contraction in FY21, and during the current fiscal growth is estimated to slow down when compared to the previous fiscal.  Commenting on the trend, former Chief Economic Advisor, former Chief Economist of World Bank (WB), and now Professor of Economics at Cornell University, Kaushik Basu, said with the new WB-IMF data coming in, it's clear that Bangladesh's per capita income has been higher than India's since 2019. "This would be unthinkable 10 years ago. We mustn't grudge a developing nation doing well. But we must pay more attention to data & science," he said in tweet. WB, in its country overview for Bangladesh, says the country has a strong track record of growth and development, even in times of elevated global uncertainty. "A robust demographic dividend, strong ready-made garment exports, resilient remittance inflows, and stable macroeconomic conditions have supported rapid economic growth over the past two decades," said WB.On Sunday, IMF said its staff team completed a staff visit to Dhaka. Post that a statement issued by IMF's Mission Chief for Bangladesh, Rahul Anand, said, "Against a challenging economic backdrop, Bangladesh remains one of the fastest-growing economies in the Asia-Pacific region." However, the statement noted that persistent inflationary pressures, elevated volatility of global financial conditions, and slowdown in major advanced trading partners continue to weigh on growth, foreign currency reserves and the taka (the sovereign currency).  Meanwhile, Asian Development Bank (ADB) has cut Bangladesh's GDP growth forecast to 5.3 per cent for FY24 to 5.3 per cent from 7.1 per cent in the last fiscal. In its latest Asian Development Outlook, ADB says the slower growth forecast reflects subdued domestic demand and weaker export expansion due to slow global growth following the Russian invasion of Ukraine. "The main risk to this growth projection is a greater economic slowdown in Bangladesh's major export destinations driven by global uncertainty over the prolonged political tensions," said ADB. For India, too, ADB cut its growth projection to 6.4 per cent from 7.2 per cent (as announced in December) for FY24. "The growth moderation in FY23 is premised on the ongoing global economic slowdown, tight monetary conditions, and elevated oil prices," the agency had said. WB, too, lowered growth projection to 6.3 per cent from 6.6 per cent, while the RBI has upped the growth forecast to 6.5 per cent from 6.4 per cent.   �Business Line (India)