LafargeHolcim Bangladesh Reports 36% Profit Fall in 2024

In Q3 of FY 2024–25, Crown Cement's profit surged 76% year-on-year to Tk 30.20 crore, driven by a 30% revenue growth to Tk 1,192.20 crore, attributed to a 30.14% increase in sales volume and a slight 0.46% price rise. Earnings per share rose to Tk 2.03 from Tk 1.15.

During a high-level meeting in Dhaka, Holcim Group reaffirmed its long-term commitment to the Bangladesh market. Martin Kriegner, Holcim’s regional head for Asia, the Middle East, and Africa, emphasized the company's continued investment and highlighted the use of non-recyclable plastics as fuel at its Chhatak plant, claiming zero environmental impact.

In FY24, Bangladesh’s steel industry faces significant challenges driven by declining demand, political uncertainty, and high operational costs. BSRM, with an annual production capacity of 24 lakh tonnes, and Abul Khair Steel, producing 30 lakh tonnes, both expanded based on prior economic momentum now lost.

The Tk 37 billion green steel project by Bashundhara Multi Steel Industries Limited (BMSIL) in Chattogram is facing significant challenges, mainly due to lack of utility and policy support. Launched in 2021, the project aims to produce eco-friendly steel using Danieli’s MIDA technology, with production expected by mid-2026.

Premier Cement Mills PLC has announced its decision to merge with two of its subsidiaries, National Cement Mills and Premier Power Generation, to enhance operational efficiency and reduce administrative costs. The merger, disclosed on March 13, will result in Premier Cement becoming the sole entity, consolidating operations such as tax filings, environmental clearances, and licensing.

LafargeHolcim Bangladesh reported a decline in sales and profits in 2024 due to political changes and macroeconomic challenges. The company’s net sales fell by 3% to Tk 2,754 crore, while net profit plunged 36% to Tk 381 crore. This resulted in a drop in earnings per share (EPS) from Tk 5.12 in 2023 to Tk 3.29 in 2024. In response, the board announced a 38% cash dividend, down from 50% the previous year.