LafargeHolcim sees drop in sales, profit

LafargeHolcim Bangladesh's sales and profits have continued to decline for the third consecutive quarter, amid broader economic challenges affecting the construction sector.

The listed cement maker's net sales dropped 2 percent year-on-year to Tk 627 crore in the July to September quarter. 

At the same time, its profit after tax plunged 45 percent to Tk 87 crore, according to a press release that was issued today after its board meeting.

Accordingly, its earnings per share was Tk 0.76 in the third quarter which was Tk 1.38 at the same quarter of the previous year.

The board of directors of the company has recommended an interim dividend of 19 percent, based on the company's financial performance up to September.

It said the challenging macro-economic environment impacted the net sales of the company.

Increased costs and sharp currency devaluation impacted its profits, though cost-saving measures provided some relief, it claimed.

Iqbal Chowdhury, CEO of the company, said the broader economic challenges impacted the construction sector in the country.

"We are strategically focusing on expanding our sales channels, strengthening our aggregate business, advancing digitalization, and promoting eco-friendly waste co-processing through our Geocycle wing."

In the nine months period of the year, its net sales dropped 4 percent to Tk 2,069 crore down from Tk 2164 crore. At the same time, its profits plummeted 37 percent year-on-year to Tk 330 crore.