LafargeHolcim Bangladesh declares 18% interim cash dividend as quarterly profit surges 36%

LafargeHolcim Bangladesh PLC, one of the country's leading multinational cement manufacturers, has declared an 18% interim cash dividend for its shareholders following a robust financial performance in the July-September quarter of 2025.

In a press release issued today (21 October), the company announced that shareholders will receive Tk1.8 per share, equivalent to Tk209.05 crore in total, representing 58.79% of its total profit for the January-September period of the year. The record date for entitlement has been fixed for 11 November 2025.

Infographics: TBS

According to the company's financial disclosure, LafargeHolcim's revenue rose by 6.49% year-on-year to Tk668 crore during the third quarter of 2025, while net profit surged by an impressive 36% to Tk119.75 crore. Earnings per share (EPS) for the quarter stood at Tk1.03.

For the first nine months of 2025, the company reported a 4.68% increase in revenue to Tk2,166 crore and a 7.48% rise in net profit to Tk355.56 crore, translating into an EPS of Tk3.06. The net asset value (NAV) per share stood at Tk17.13 as of 30 September 2025.

The company attributed its strong quarterly results to steady business momentum, resilient customer engagement, and the growth of its premium product portfolio alongside its expanding aggregates business. 

This performance came despite the broader slowdown in Bangladesh's construction sector, which has been affected by lower public spending and sluggish private credit growth.

Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh, said, "While the broader construction industry continues to face headwinds due to subdued public sector investment and lower private credit growth, I'm proud to share that our business has delivered a resilient performance, achieving volume growth in both cement and aggregates. This is a clear testimony to our customers' confidence in our products and services."

He added that the company's focus on innovation and specialised products had played a vital role in sustaining growth. "Our commitment to innovation is paying off, with specialised cement products like 'Water Protect' and 'Fair Face' growing significantly – a clear indicator of superior consumer preference and our market leadership," Chowdhury said.

The CEO also highlighted the company's continued progress in sustainability and diversification. Through its Geocycle initiative, LafargeHolcim Bangladesh co-processed over 34,000 tonnes of waste in the first nine months of the year, replacing about 11% of fossil fuels used in production. "This initiative not only demonstrates our commitment to environmental responsibility but also enhances operational efficiency," he added.

Chowdhury acknowledged that profitability had come under pressure from rising energy costs and market price fluctuations, but emphasised that the company had introduced proactive cost-efficiency measures and strategic pricing reviews to mitigate those challenges.

"We are confident these actions, combined with our diversification strategy, will drive improved performance and sustain our growth momentum in the coming quarters," he said.

He further noted that LafargeHolcim Bangladesh's success reflected its team's agility and strategic focus. "By diversifying our portfolio and deepening our engagement with private sector clients, we have not only weathered the slowdown but continued to grow. We remain focused on driving sustainable growth, optimising operations, and delivering long-term value to all our stakeholders."

LafargeHolcim Bangladesh's share price edged down slightly by 0.19% to close at Tk51.20 on the Dhaka Stock Exchange on Tuesday.

In June this year, LafargeHolcim Bangladesh signed two new Gas Sales Agreements (GSAs) with Jalalabad Gas Transmission and Distribution System Limited – one for industrial use and another for captive power – each for a period of 10 years, effective from 18 January 2026.

Under the new agreements, Jalalabad Gas will supply 16 million cubic feet of gas per day (mmcfd) to the cement manufacturer at Tk40 per cubic meter for its cement plant and Tk42 per mmcfd for its captive power plant, as per the new rates set by the Bangladesh Energy Regulatory Commission.

To further strengthen its production capabilities, the company's board approved an investment of Tk180 crore earlier this year to install a new mill at its Surma plant in Chhatak, Sunamganj. The project, according to the company, will improve energy efficiency and operational reliability.

LafargeHolcim Bangladesh PLC was incorporated on 11 November 1997 under the Companies Act 1994 as a private limited company, originally named Lafarge Surma Cement Limited. 

The company later became a public limited company and rebranded as LafargeHolcim Bangladesh PLC following the global merger of Lafarge and Holcim. The company also operates two subsidiaries in India, which primarily support its cross-border operations.