Most cement makers have posted a fabulous profit growth in the just concluded January-March quarter, thanks to an increase in sales, a decline in production costs, and increased prices of finished products.
Out of the seven cement companies listed on the country’s capital market, at least four firms witnessed a year-on-year profit rise in the quarter.
LafargeHolcim Bangladesh Limited (LHBL), Crown Cement, HeidelbergCement Bangladesh, Premier Cement Mills PLC, Aramit Cement Limited, Confidence Cement, and Meghna Cement Mills Ltd are the listed cement firms in Bangladesh.
Of them, LafargeHolcim, Crown Cement, HeidelbergCement, and Premier Cement reported a year-on-year surge in their profits, while Meghna Cement, and Confidence Cement suffered profits decline.
On the other hand, Aramit Cement incurred losses in the just concluded January-March quarter.
LHBL profit up 100%
LafargeHolcim Bangladesh Limited (LHBL) posted a 102 per cent year-on-year jump in net profit to Tk 191 crore in the first quarter of 2023.
The publicly traded company’s operating earnings before interest and taxes (EBIT) stood at Tk 243 crore in the January-March quarter this year, a growth of 90 per cent over the same period last year.
Meanwhile, the multinational’s net sales jumped by 37 per cent to Tk 854 crore in the first quarter of 2023 compared to Tk 625 crore in 2022.
Its earnings per share (EPS) increased to Tk 1.64 for the January-March quarter this year against Tk 0.81 for the same quarter last year.
Commenting on the issue, Iqbal Chowdhury, chief executive officer of LHBL said, “The first quarter’s performance implies the strength of our diverse product portfolio and strategic presence, driven by innovative products, high-value solutions, a digital footprint, and new channels.”
“We are also supporting our customers with sustainable waste management solutions through Geocycle. I wholeheartedly thank all our employees, along with our valued channel partners and stakeholders, for this strong start in the year,” he added.
“In the given market context, we shall continue to focus on the expansion of channels, businesses aggregations, and new products and solutions in the market, and at the same time enhance our digital footprint in Bangladesh to ensure sustainable growth,” Iqbal Chowdhury continued.
HeidelbergCement makes superb profit
HeidelbergCement Bangladesh posted 5 per cent higher revenue of Tk 568 crore in the January-March quarter of 2023 than that in the same period the year before.
The cement maker’s net profit stood at Tk 38.69 crore in this year’s first quarter, compared to a loss of Tk 16.77 crore in the corresponding quarter last year.
Its earnings per share stood at Tk 6.85 at the end of March this year, which was Tk 2.97 negative at the end of March last year.
Officials at the company knowing the matter, said its earnings jumped in Q1 this year due mainly due to a higher net sales price, a lower cost of raw materials, and lower plant repairs and maintenance costs.
Crown Cement soars
Crown Cement PLC posted a significant improvement in its profits in the January-March quarter of the fiscal year 2022-23.
The cement maker’s earnings per share jumped to Tk 1.52 in the January-March period or the third quarter of the fiscal year, which was Tk 0.16 in the same period last fiscal.
The company’s net profit jumped to Tk 22.57 crore in the January-March quarter of the current fiscal from Tk 2.37 crore in the same quarter last fiscal.
Premier Cement’s profit 20 times higher
Premier Cement Mills PLC posted more than 20 times higher profits year-on-year in the January-March quarter of the current fiscal year, thanks to new investments, causing to boost earnings by leaps and bounds.
The cement maker reported Tk 30.81 crore in net profit in the third quarter (January-March) of the fiscal year 2022-23, against the profit of Tk 1.51 crore in the same quarter last fiscal.
Meanwhile, the publicly traded company witnessed over 41 per cent surge in revenue in the just concluded quarter this fiscal.
The tech-savvy new plant escalated the company’s production capacity manifold, while the plant is also helping the firm produce cement at a lower cost.
With the new plant being operational, the cement maker’s production capacity has reached 24,520 metric tonnes per day from the previous capacity of 8,000 metric tonnes of cement.
The company’s cement sales jumped by 41 per cent year-on-year in the January-March quarter this fiscal, while the sale of empty cement bags surged 46 per cent during the period, according to its latest financial report.
Kazi Shafiqur Rahman, company secretary of Premier Cement told The Business Post, “After the start of the new plant, our production capacity increased on a large volume, resulting in higher revenues and profits.”
Regarding the sale of empty cement bags, he said, “The demand for our empty cement bags has grown up significantly in the market. Heidelberg Cement, in particular, buys a bulk number of cement bags from us.”
Confidence Cement profit dips 29%
Confidence Cement Ltd reported Tk 15.11 crore in net profit in the January-March quarter of the current fiscal year, down more than 29 per cent that the profit of Tk 21.44 crore in the same quarter of the last fiscal year.
Meghna Cement suffers profit loss
Meghna Cement Mills Ltd made a net profit of Tk 12 lakh in the January-March period or third quarter of the fiscal year 2022-23, which was over more than 91 per cent down the profit of Tk 1.41 crore in the third quarter of the previous fiscal.
Aramit Cement in loss
Aramit Cement Limited, another listed cement maker incurred a net loss of Tk 13.45 crore in the January-March quarter of the fiscal year 2022-23.
The company’s loss got intensified in the third quarter of the current fiscal, as the listed firm’s net loss was Tk 11.85 crore in the January-March quarter of the fiscal 2021-22.