The income of the international cement maker LafargeHolcim Bangladesh fell in the first quarter of 2022 due to a conflict with the government, which prevented it from operating its limestone chip business, also known as aggregate.
Previously, the company’s revenue and profit declined in the April-June quarter of 2020. LafargeHolcim’s revenue and profitability have gradually risen each quarter since then. The company reported a revenue of Tk625.85 crore and a net profit of Tk94.47 crore in the January-March quarter of this year, which was 1 per cent and 9 per cent lower than the same period the previous year. According to a press statement, the company’s profit has decreased as a result of rising raw material prices.
In January 2021, LafargeHolcim began crushing and selling aggregates, and its profits skyrocketed thanks to the building commodity’s strong margins. However, the ministry directed LafargeHolcim to halt producing aggregates in September of last year after an investigation committee discovered the company crushing aggregates obtained from limestone mined in the northeastern Indian state of Meghalaya at an illegal site in Chhatak, Sunamganj. After a six-month legal struggle, the industries ministry permitted LafargeHolcim to begin crushing and selling aggregates at the end of March this year.
Analysts previously told The Division Standard that LafargeHolcim’s aggregates business accounted for roughly one-fifth of the company’s revenue and at least one-third of its profitability in the first nine months of 2021.
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