LafargeHolcim Bangladesh to pay Tk441cr dividend despite 36% profit drop
The dividend declaration was made during the company’s board meeting held on Wednesday, according to an official statement
LafargeHolcim Bangladesh, a leading multinational cement manufacturer, has announced a 38% cash dividend for 2024, amounting to around Tk441 crore, despite a 36% decline in net profit.
The dividend declaration was made during the company's board meeting held on Wednesday, according to an official statement.
The board recommended a 19% cash dividend as the final payout for the year, in addition to the 19% interim cash dividend already distributed based on the financial results for the first nine months.
However, the total dividend for 2024 is 24% lower compared to the previous year, when the company posted record profits.
Keep updated, follow The Business Standard's Google news channel
The proposed dividend and audited financial report will be presented for approval at the annual general meeting, scheduled for 8 May. The record date for eligibility has been set for 9 April.
In its statement, LafargeHolcim attributed the challenging year to the recent political transition and a difficult macroeconomic environment.
The Europe-based cement producer reported a 3% decline in revenue, which stood at Tk2,754.30 crore, while net profit fell by 36% year-on-year to Tk381.90 crore.
In a press statement, Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said Bangladesh experienced an eventful year in 2024, yet the company successfully navigated the challenges.
"We have made significant progress in expanding our innovative and unique sales channels, including direct-to-retail and net retail outlets," he added.
The CEO said special products now contribute 8% to the total revenue, while the aggregates business saw a 25% growth in operating profit.
Additionally, through its global platform, Geocycle, the company co-processed over 45,000 tons of diverse waste streams, replacing more than 10% of fossil fuels and advancing its green growth agenda, he added.
Looking ahead, Chowdhury emphasised the company's focus on expanding sales channels, digitizing operations, scaling the aggregates business, and enhancing sustainable waste co-processing through Geocycle.
"With a steadfast commitment to operational excellence, cost optimization, and innovation, LafargeHolcim Bangladesh remains confident in delivering strong results in the future," he noted.
LafargeHolcim Bangladesh, which was listed on the Dhaka Stock Exchange in 2003 as a greenfield company, saw its shares close at Tk48.90 on Wednesday, which was 0.20% lower from the previous session.
LafargeHolcim is a leading provider of building material solutions in Bangladesh. With over two decades of operations, the company has invested approximately $500 million, marking the largest foreign direct investment in the sector.
This investment has enabled the establishment of a fully integrated cement plant and three grinding stations, solidifying its position as a key player in the industry.
The company is a joint venture between the Holcim Group, based in Switzerland, and Molins, based in Spain. Leveraging state-of-the-art technology and a team of highly skilled professionals, the company produces world-class cement and other building materials.
These products cater to the increasing demand driven by Bangladesh's massive infrastructure development programs and improving socio-economic conditions.
In addition to its contributions to the construction sector, LafargeHolcim Bangladesh has created direct and indirect employment opportunities for over 3,000 people, playing a significant role in the country's economic growth and development.
