Higher costs push Heidelberg Cement into quarterly losses
The company has been incurring back to back quarterly losses since the third quarter of 2021
Despite an increase in its revenue, Heidelberg Cement Ltd incurred a loss in the third quarter (July-September) of 2022 owing to the skyrocketing prices of raw materials.
The company has been incurring back to back quarterly losses since the third quarter of 2021.
According to its Q3 financial statement, Heidelberg Cement's revenue increased 14% to Tk349.67 crore, compared to the same quarter previous year.
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Yet, the company saw a loss of Tk3.6 crore in the quarter because of soaring raw materials and freight costs, as well as the taka's devaluation against the US dollar, the company said in its financial report.
In the first nine months of this year, the company's net loss stood at Tk24.13 crore.
According to industry leaders, cement companies are facing pressure to raise the prices of finished goods to keep their profitability. But the extreme competition in the local market barely allows that to happen.
The company's share price is still stuck on the floor at Tk179.10 per share at the Dhaka Stock Exchange (DSE).
