LafargeHolcim reports BDT 163 crore profit in Q1, 2024
● LHB recorded a modest single-digit decline in revenue, down by 3%, in a context of elevated inflation.
● Operating EBIT reached 212 crore BDT, representing 13% decline attributed to increased costs.
● Operational excellence and efficiency activities continued to protect leading industry margin.
| Particulars | Q1 2024 | Q1 2023 | Change (%) | |
| Net Sales | mBDT | 8,257 | 8,546 | -3% |
| Operating EBIT | mBDT | 2,116 | 2,432 | -13% |
| Operating EBIT Margin | % | 26% | 28% | |
| Profit After tax | mBDT | 1,627 | 1,909 | -15% |
| Profit After tax margin | % | 20% | 22% | |
| Earnings per Share (EPS) | BDT | 1.40 | 1.64 | -15% |
Mr. Iqbal Chowdhury, CEO of the company said:
“The construction Industry is going through a challenging time, with a consistently high inflationary environment impacting consumption. However, we continued our focus on the expansion of sales channels, aggregates business, new products and solutions and improved market presence to ensure stronger results in the quarters to come. We also have entered into the Bricks & Blocks market by launching Holcim Blocks, which is environment friendly and has a growth potentials in the market. We also have won “Green Factory Award 2023” recently from the Ministry of Labor and Employment that reflects our commitment towards ensuring a safe workplace for our employees and a sustainable green environment around our operations.”
Business Performance:
Operating EBIT reached 2,116 mBDT, 13% less than the same quarter of the last year. Net sales decreased by 3% to 8,257 mBDT compared to 8,546 mBDT in Q1, 2023. Earnings per Share (EPS) declined by 15% to BDT 1.40 from to BDT 1.64 in Q1, 2023.
Geocycle is continuing to offer long-term solutions to the country’s waste management challenges. More than ~10,000 tons of diverse waste streams were safely disposed-off during this period which is 25% higher than the same period of the last year that clearly accelerated the green growth agenda of the company. The company has also launched a material recovery plant in Sylhet in association with Sylhet City Corporation (SCC) with the aim to sustainably manage the Municipal Solid Waste (MSW) of the city which shall play an important role in increasing the Thermal Substitution Rate (TSR) for the rest of the year.
Outlook
The rest of the year will be challenging due to ongoing inflation and persisting foreign exchange pressure. Despite that, we are optimistic and well poised to continuously deliver strong performance with leading industry margin.
