Leading cement manufacturer LafargeHolcim Bangladesh PLC will invest Tk 180 crore to install a new industrial-use mill to improve energy efficiency and reliability of its Surma plant in Sunamganj's Chhatak.

The decision was approved at a board meeting held on May 7, the company said in a disclosure on the Dhaka Stock Exchange (DSE) website today.

Meanwhile, the cement maker saw its profit decline in the first quarter of 2025, although its revenue rose on the back of steady market demand.

The company reported a profit of Tk 139.1 crore in the January-March quarter, marking a 14 percent year-on-year drop due to rising energy costs and falling cement prices.

Its earnings per share fell to Tk 1.2 during the quarter, from Tk 1.4 in the same period a year ago.

Despite the profit slump, the company's revenue grew 3 percent year-on-year to Tk 851.5 crore, supported by stable demand and strong customer confidence in its cement brands, the company said in a press release.

The company's consolidated operating earnings before interest and taxes stood at Tk 177.7 crore, down 16 percent year-on-year, mainly due to elevated fuel costs and price pressure in the cement market.

However, LafargeHolcim said its aggregated business continued to perform well, posting a 20 percent growth in operating profit during the quarter.

"In the first quarter of 2025, we achieved higher volume growth in two key business segments, cement and aggregates, reflecting our strong market performance and customer trust," said Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh.

He said special cement products "Water Protect" and "Fair Face" registered 27 percent growth, reflecting rising consumer recognition of their unique features.

"However, our profitability was impacted by significantly higher energy costs and a softening in cement prices, both of which weighed on our margins," he added.

To tackle these challenges, the company is pursuing cost optimisation and exploring strategic pricing initiatives, while continuing to focus on innovation and product diversification.

The company said it would continue investing in operational efficiency, digital transformation, and sustainability initiatives to bolster long-term growth and profitability.

As of March 31, 2025, the company's shareholding stood at: sponsor/director 63.97 percent, institutions 21.09 percent, foreign investors 0.83 percent, and public 14.11 percent, according to DSE data.

LafargeHolcim Bangladesh, a joint venture of Holcim and Molins, is a leading cement manufacturer in Bangladesh, with over $500 million invested in one integrated plant and three grinding stations, according to its website.