HeidelbergCement sales drop 15% to Tk480cr in Q1

Shares in HeidelbergCement Bangladesh declined by 1.12%, or Tk2.60 each, to Tk229.30 at the Dhaka Stock Exchange (DSE) on Wednesday after the cement manufacturer experienced a 15% year-on-year drop in sales in the first quarter.

However, the multinational company posted a 1.62% growth in profit, primarily propelled by higher net sales price per tonne and lower cost of goods sold, according to its financials published on Wednesday.

In the January-March quarter of 2024, the company recorded Tk480 crore in sales. 

The turnover value of HeidelbergCement stood at Tk1.17 crore at the country's premier bourse on Wednesday.

Regarding the sales decline, Saikat Khan, director of Legal and Corporate Affairs at HeidelbergCement Bangladesh, told The Business Standard, "Competitors in the cement sector reduced prices of their products, but we have not reduced prices, which might have impacted our sales." 

"Also, the overall growth of the cement sector declined by 0.7%," he added.

According to its financials, HeidelbergCement's cost of goods sold was Tk400 crore, which is 83.37% of its total revenue. 

In the same period of 2023, its cost of goods sold was Tk481.69 crore which is 84.82% of the total revenue of Tk567.87 crore.

Its net profit after tax stood at Tk39.32 crore for the first quarter, an increase from Tk38.69 crore a year earlier. 

The earnings per share (EPS) increased to Tk6.96. The net asset value (NAV) per share increased to Tk74.16 as of 31 March 2024, while its net operating cash flow per share (NOCFPS) declined to Tk23.

The increase in NAV per share was mainly due to net profit compared to 31 December 2023, while NOCFPS decreased compared to the same period last year, mainly due to lower sales volume and collection, according to its disclosure.

The multinational company recommended a 25% cash dividend to its shareholders for the year 2023. To secure shareholders' approval for the dividend and the annual audited report, it called an annual general meeting on 8 May.

The cement manufacturer posted an EPS of Tk8.13 for 2023. Earlier in 2022, it had paid a 10% cash dividend despite incurring a loss of Tk23 crore.