LafargeHolcim reports mBDT 3,308 profit in YTD September 2024
• The challenging macro-economic environment impacted the Net Sales as of YTD September.
• Operating EBIT stood at mBDT 4,758 in YTD September, with increased costs and sharp currency devaluation impacting performance, though cost-saving measures provided some relief.
Mr. Iqbal Chowdhury, CEO of the Company said:
"Amidst the broader economic challenges impacting the construction sector in the country, I am proud to share that LafargeHolcim Bangladesh PLC. has demonstrated resilience and stronger performance in the industry. Thanks to my colleagues and channel partners. We are strategically focusing on expanding our sales channels, strengthening the Aggregates business, advancing digitalization and eco-friendly waste co-processing through our Geocycle wing. With our unwavering commitment to Agility, Cost Optimization and Innovation we are confident to deliver robust results in the days to come. The Board of Directors have recommended an interim dividend of 19%, based on the Company’s financial performance up to September 30, 2024."
Business Performance:
Particulars | Q3 2024 | Q3 2023 | Change (%) | YTD Sep 2024 | YTD Sep 2023 | Change (%) | |
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Net Sales | mBDT | 6,273 | 6,390 | -2% | 20,692 | 21,646 | -4% |
Operating EBIT | mBDT | 1,292 | 2,032 | -36% | 4,758 | 6,632 | -28% |
Operating EBIT Margin | % | 21% | 32% |
| 23% | 31% |
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Profit After tax | mBDT | 878 | 1,599 | -45% | 3,308 | 5,214 | -37% |
Profit After tax margin | % | 14% | 25% |
| 16% | 24% |
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Earnings per Share (EPS) | BDT | 0.76 | 1.38 | -45% | 2.85 | 4.49 | -37% |
In YTD September 2024, Operating EBIT reached mBDT 4,758, which is 28% less than the same period of the last year. Net sales decreased by 4% to mBDT 20,692 compared to mBDT 21,646 in YTD September 2023. Earnings per Share (EPS) declined by 37% to BDT 2.85 from BDT 4.49.
Geocycle, the waste management wing of the company is continuing to offer long-term solutions to the country’s waste management challenges. Up to September 2024, the Company co-processed more than 32,000 tons of diverse waste streams accelerating the green growth agenda of the company. This resulted in 10.25% Thermal Substitution Rate (TSR) for the Company.
Outlook:
The rest of the year will be challenging due to the high inflation and the deficit in foreign currency. Despite that, we are optimistic and well poised to deliver a resilient performance with leading industry margin.
Interim Dividend:
The Board of Directors of LafargeHolcim Bangladesh PLC. declared payment of interim cash dividend @ 19% at Tk. 1.9 per Equity Share of Tk.10 face value aggregating to Tk. 220.66 crore for the third quarter ending September 2024.
