Heidelberg Materials slips into loss in H1 on margin squeeze
In 2025, the company had distributed an 11% cash dividend, a significant drop from the 25% cash dividend paid in 2024.
Heidelberg Materials Bangladesh PLC, a leading multinational cement manufacturer, has reported a significant financial downturn for the first half of 2026, swinging into a net loss due to shrinking profit margins and a decline in sales volume.
According to the company's price-sensitive statement released today (25 July), the firm incurred a consolidated net loss of Tk11 crore during the January-June period, a sharp reversal from the Tk22.30 crore net profit recorded in the corresponding period of 2025.
The company's revenue for the first six months of the year dropped by 11% to Tk684 crore, down from the previous year's levels. This poor performance resulted in a loss per share of Tk1.96.
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The company's balance sheet also showed signs of strain, with the net asset value (NAV) per share settling at Tk70.86, while the net operating cash flow per share turned negative at Tk0.89, highlighting tightening liquidity.
The deterioration in earnings was also evident in the second quarter alone. During the April-June period of 2026, the company's turnover edged down by 5% to Tk321 crore. Consequently, it posted a quarterly net loss of Tk6.13 crore, compared to a net profit of Tk2.65 crore in the same quarter of the previous year. The loss per share for the three-month period stood at Tk1.09.
Management attributed the losses primarily to a lower profit margin per tonne of cement produced and a general slowdown in sales volume amidst a competitive and challenging market environment.
In 2025, the company had distributed an 11% cash dividend, a significant drop from the 25% cash dividend paid in 2024.
Shares of Heidelberg Materials closed 0.82% lower at Tk231 on the Dhaka Stock Exchange today.
