LafargeHolcim Bangladesh delivers strong profit after tax in 2023

● Robust topline growth of 20% driven by Innovative and New Products 
● Significant achievement in processing waste of ~ 50,000 tons as part of  
De-carbonization initiatives
● Over proportional 30% EBIT growth with an improvement of margin by 200 bps

Mr. Iqbal Chowdhury, CEO of the company said:

“2023 was a very good year for LafargeHolcim Bangladesh. I would like to start by paying tribute to my colleagues for all that they did last year. They have fully embraced our core purpose of “sustainability” and expansion in to a “diversified portfolio” of our business. 

“The performance demonstrates the strength of our diverse product portfolio and strategic presence driven by innovative products, high-value solutions, digital footprint and new channels. Advancing our leadership in sustainability, we are in the right track of reducing our carbon footprint per ton cement production. We are also at the forefront of decarbonizing building across its entire lifecycle to build a net-zero future that works for people and the planet, while delivering solid performance at the same time. We are also supporting our customers with sustainable waste management solutions through Geocycle. As we already entered in 2024, I look forward to another year of continued profitable growth and fast-paced transformation, to become the leader in innovative and sustainable building solutions in the country.”

 
Business Performance:
Operating EBIT reached mBDT 7,758, growth of 30% over last year. Net sales increased by 20% to 28,388 mBDT compared to 23,594 mBDT in 2022. Earnings per Share (EPS) increased by 34% to BDT 5.12 compared to BDT 3.83 in 2022.

Geocycle continued to offer long-term solutions to the country’s waste management challenges. Approximate 50,000 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.

Dividend
As a testament to its exceptional performance in 2023, the company’s Board of Directors has proposed a final cash dividend of 50% at Tk. 5.00/- per Equity Share with a face value of Tk.10. This remarkable dividend payout reflects the company’s unwavering confidence in its long-term sustainability.

Outlook
The 2024 will be challenging due to geopolitical uncertainty, ongoing inflation and persisting foreign exchange crisis. Despite that, we are optimistic and well poised to deliver strong performance, as we demonstrated in the previous years.