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 PLC, a leading multinational cement manufacturer, has announced a 38% cash dividend for 2024, amounting to approximately Tk441 crore, despite a 36% decline in net profit.
The dividend declaration was made during the company's board meeting held on Wednesday (12 March), 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 of 2024.
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However, the total dividend for 2024 is 24% lower than that of the previous year, when the company posted record profits.
The proposed dividend and audited financial report will be presented for approval at the Annual General Meeting (AGM), 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 company reported a 3% decline in revenue, which stood at Tk2,754.30 crore, while net profit fell by 36% to Tk381.90 crore compared to the previous year.
Iqbal Chowdhury, Chief Executive Officer of LafargeHolcim Bangladesh, commented on the company's performance, stating, "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 that 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.
Looking ahead, Chowdhury emphasized 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.
