Q4, 2020 Financial Results LafargeHolcim Bangladesh posts outstanding results, full year net profit up by 36%
- Various cost and efficiency improvements have helped to achieve the impressive results
- Free Cash Flow (FCF) reached to mBDT 3,657, an improvement by 32 with a Cash Conversion of 89
Rajesh K Surana, CEO, LafargeHolcim Bangladesh said “The Company has demonstrated resilient result with its focus on HEALTH, COST and CASH. Our initiatives to focus on digital and innovation, provided further impetus to the outstanding results. We are very proud of the agility and great team work of our employees and the strong support of our customers and suppliers.”
The Board of the Directors of LafargeHolcim Bangladesh Limited in its meeting held on 02 March, 2021 recommended 10 final cash dividend for the year ended on 31 December 2020.
Performance
Net Sales during the year reduced by 9 to 16,222 mBDT compared to 17,840 mBDT for the year 2019 due to COVID-19 lock down and supply disruptions. Operating EBIT reached to mBDT 2,954, a growth of 1 over last year and the Profit after Tax for the year registered an impressive growth of 36 to 2,361 mBDT against 1,737 mBDT, on the back of various cost reduction and amalgamation benefit of taxation.
The company in 2020 launched specialised water proofing product “Holcim Water Protect” and also introduced Digital App for better access by the customer. During the year, our focus on supply chain management, contract negotiations and improved production efficiencies have helped mitigating the impact of softer volume growth. Fixed costs were also significantly lower during the year. The Company’s cost management and operational efficiency programs have maintained their strong momentum in a pandemic year.
With its strong balance sheet, LafargeHolcim Bangladesh is well positioned to take advantage from the expected uptick in demand.
Outlook
Despite the uncertainty and disruptions surrounding COVID-19, the Company believes that Bangladesh with its strong record of growth and sound economic policies will continue its growth momentum. The recent initiatives by the Government coupled with improvements in inward remittances will help resurgence of rural demand. Additionally, Government impetus on infrastructure will play a strong role in driving cement demand.
About LafargeHolcim Bangladesh:
LafargeHolcim Bangladesh Ltd. (LHBL) is a frontline cement producer in Bangladesh. Operating for almost two decades, it has invested ~ US$ 500 million in building one fully integrated cement plant and three grinding plants, the largest foreign direct investment in the sector. It is a joint venture of LafargeHolcim Group based in Switzerland and Cementos Molins based in Spain. With state-of-the art technology and well groomed staff, the company produces world class cement to meet the growing demand generated by massive infrastructure development programs and improved socio economic conditions. The company has provided direct and indirect employment opportunities for over 3000 people.
With its grip in global standards and strength in innovations, LafargeHolcim Bangladesh Limited is also regarded as a dependable solution provider in construction materials. It is producing and supplying customized cement for high profile projects in the country.
