Source: The Business Standard

LafargeHolcim posts record profit in Jan-MarTBS Report 08 May, 2023, 05:55 pm Last modified: 08 May, 2023, 11:10 pm Infographic: TBS"> Infographic: TBSLafargeHolcim Bangladesh Limited has made a strong start to the year, posting a net profit of Tk190 crore in the first three months, the highest in a particular quarter for the company.The net profit jumped over 102% year-on-year, and earnings per share stood at Tk1.64, up from Tk0.81 a year ago.In a press release, the company said its sales increased by 37% to Tk854 crore in the January-March quarter compared to Tk625 crore in 2022.Iqbal Chowdhury, chief executive officer of the cement manufacturer, said in the press release, "The first quarter's performance demonstrates the strength of our diverse product portfolio and strategic presence driven by innovative products, high-value solutions, a digital footprint, and new channels.""We are also supporting our customers with sustainable waste management solutions through Geocycle," he added.He thanked all employees of the company, along with its valued channel partners and stakeholders, for the strong start to the year."In the given market context, we shall continue to focus on the expansion of channels, aggregate business, new products, and solutions in the market, and at the same time enhance our digital footprint in Bangladesh to ensure sustainable growth," he noted.The company also said in the press release that Geocycle continued to offer a long-term solution to the country's waste management challenges. More than 8,000 tonnes of diverse waste streams were safely disposed off during this period, which clearly accelerated the green growth agenda of the company. Its journey for cost leadership remained a focal point during the quarter and had a very positive impact on the overall result.It said that the rest of 2023 will be challenging as geopolitical uncertainty and inflationary pressure continue. "Despite that, we are optimistic and well poised to deliver a strong performance, as LafargeHolcim demonstrated in the previous quarters."Meanwhile, its shares closed at Tk68.40 each on Monday at the Dhaka Stock Exchange, which was 1.72% lower than the previous session.Apart from LafargeHolcim, its peer competitor also did well in the cement business in the January-March quarter of this year.HeidelbergCement Bangladesh has snapped a losing streak of five quarters and returned to profit in the first three months of this year.Seeking anonymity, a senior officer of HeidelbergCement told The Business Standard, "Since October last year, the price of cement raw material has been falling in the global market. And since this time, the price of cement has also increased by 5-10%. It has helped us overcome losses and return to profit."Premier Cement and Crown Cement also fared well during the corresponding quarter.Premier Cement recorded a 20-time higher profit, and Crown Cement posted an 850% higher profit compared to the same period a year ago."Two factors together helped us recover earnings in the March quarter – the expanded capacity and some breathing space in business," Md Selim Reza, chief financial officer (CFO) of the company, earlier told TBS.Expanded capacity, added in July last year, helped the company achieve 36% volume growth, while the price increase to cope with the surged costs helped it earn 41% higher revenue in the January-March period, he added.Secondly, both the long-lasting and sudden adversities in the cement business eased a bit, said Reza.